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Tech Companies Get Double-Digit Bounce From Wall Street Rally
Wall Street continued to make history Monday -- only this time the news was positive.
The Dow Jones industrial average broke an eight-day losing streak, with a notable rally that also lifted the S&P 500 and the Nasdaq Composite. After its worst week in history, the Dow staged a record comeback with the highest day's point gain in history.
The index rose 936 points to close at 9,387.61. In percentage terms, that's an 11.08% increase over Friday's close. The S&P 500 rose 11.58%, or 104.13 points, to close at 1,003.35. The tech-heavy Nasdaq rose 11.81%, or 194.74 points, to close at 1,844.25.
Virtually all tech stock sectors closed up, and most of the best-known technology companies posted gains. Several tech companies showed remarkable one-day rebounds.
Google closed up 14.77%, or $49.02, at 381.02 a share. Apple saw a 13.97% increase to close at $110.26 a share. Microsoft shares rose 18.4% to close at $25.50.
While many hoped that Monday's developments meant that Friday represented a bottom, skeptics warned that it is too early to tell whether the rally marks a short-term bounce or the beginning of a long-term turnaround.
U.S. banks had closed for the Columbus Day holiday, so trading was relatively light, the bond market was inactive, and its potential sellers were not around to offset Monday's buyers.
Either way, the market still has a long way to go to make up for the losses it suffered over the last several weeks and the even greater decline since the Dow reached an all-time high last year.
The United Kingdom's huge cash injections into banks, as well as hopes for swift and coordinated action by global leaders, may be enough to boost investors' optimism for some time. However, job reports, holiday sales, and other indicators over the next weeks and months could dampen enthusiasm.