Advertisement - Click to support our sponsors.
NEW YORK -- Optimism that interest rates might soon be lowered sent blue-chip stocks soaring today, while earnings worries again dogged the tech sector. Dow jumps 210
Associated Press
Financial stocks surged on speculation that the Federal Reserve would cut rates more quickly than expected. But tech stocks fell, unable to overcome Wall Street's doubts about their profitability in the slowing economy.
"Tech stocks don't seem to have found a bottom yet," said Steven Goldman, market strategist at Weeden & Co. "We're in the midst of what could be a reversal of these high interest rates, and they're still not ready to stabilize. The market thinks at least some of them are still overvalued."
The Dow Jones industrial average gained 210.46 to 10,645.42 while the Standard & Poor's 500 index rose 10.59 to 1,322.74.
But the rally didn't extend to the Nasdaq composite index, which fell 28.74 to 2,624.53.
Advancers outnumbered decliners 5 to 3 on the New York Stock Exchange, with 1,880 up, 1,084 down and 380 unchanged. Volume was 1.16 billion shares vs. 1.56 billion on Friday.
The NYSE composite index rose 7.37 to 643.23, the American Stock Exchange composite index gained 9.79 to 875.00 and the Russell 2000 index was up 5.22 at 463.25.
The Treasury's 10-year note was unchanged at 5.18 percent while the 30-year bond fell 12/32 to 111 24/32, with its yield rising 2 basis points to 5.44 percent.
Among tech losers today were Microsoft, which slipped $1.38 to $47.81, and Cisco Systems, which dropped $5.23 to $42.94.