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US-STOCKS-MARKETS
Wall Street rebounds after rout, Nasdaq +3.0%
NEW YORK, Oct 26, 2018 (BSS/AFP) – Wall Street rebounded strongly on
Thursday from the prior session’s rout, with tech shares leading a broad-
based rally following a series of mostly good earnings reports.
The tech-rich Nasdaq Composite Index jumped 3.0 percent to 7,318.34, a day
after the index suffered its biggest decline in seven years.
The Dow Jones Industrial Average gained 1.6 percent to 24,984.55, while
the broad-based S&P 500 advanced 1.9 percent to 2,705.57.
Analysts said the gains were unsurprising after Wednesday’s ugly finale,
especially after strong earnings from Microsoft, Tesla Motors and others
reassured investors.
“We are seeing what we call a bottom fishing today,” said Howard
Silverblatt, senior analyst at S&P Dow Jones Indices.
Major US indices lost more than two percent Wednesday in a bruising sell-
off precipitated by fears over slowing corporate earnings growth.
Other issues that have pressured stocks include worries about rising US
interest rates and uncertainty over the fallout from the murder of Saudi
Arabian journalist Jamal Khashoggi.
Companies with big gains after earnings Thursday included Microsoft, which
rebounded 5.8 percent, Tesla, up 9.1 percent, American Airlines, up 6.7
percent, Ford, up 10.0 percent and Twitter, up 15.5 percent.
“After a severe sell-off its perfectly normal to see the market rebound,”
analyst Adam Sarhan said. “The key question: Is it a one-or two-day rally or
is it a new trend?”
BSS/AFP/HR/0950