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Wall Street Stocks Rebound Sharply
Wall Street stocks rebounded sharply Monday amid investors' bargain-hunting buying after the major indexes fell to the lowest levels in three years in last week. The Dow index rose more than 4 percent and the Standard & Poor's index broke through its resistance at 1,000.
The Dow Jones industrial average surged 368.05 points, or 4.5 percent, to 8,603.86 after the index tumbled 1,369.70 points last week, the biggest point decline ever.
Broader stock indicators were sharply up. The technology heavy Nasdaq composite index soared 76.21 points, or 5.4 percent, to 1, 499.40 after dropping 271.18 points last week. The Standard & Poor 's 500 index jumped 37.65 points, or 3.9 percent, to 1,003.45 following last week's fall of 126.74 points.
The markets opened higher, with the Dow index rebounding more than 200 points and Nasdaq composite rising 3.6 percent in the first five minutes, as investors aggressively bought the stocks after the Dow index plunged 14 percent, the Nasdaq index tumbled 16 percent and Standard & Poor's index dropped 11.6 percent last week, their largest falls in recent years.
The stocks then hovered in the session as the Dow rocketed more than 400 points, the Nasdaq broke through its 1,500 resistance level, and the Standard & Poor's index surpassed 1,000 benchmark in afternoon trading.
Nearly all sectors rallied after last week's heavy losses, with the airline stocks taking the lead as the U.S. government delivered a 15-billion-dollar aid package to the industry. AMR Corp., the parent of American Airlines, rose 40 cents to 18.30 dollars, and Continental Airlines added 85 cents to 15.51 dollars.
In technology issues, Intel advanced 2.01 dollars, or 10.4 percent, to 21.31 dollars, and Oracle rose 1.76 dollars, or 16.4 percent, to 12.52 dollars. But energy sector fell as the crude oil prices had dropped since last week, with Chevron slipping 2.91 dollars to 81.10 dollars and Texaco declining 2.20 dollars to 61. 85 dollars.
The NYSE index rose 17.21 points to 521.42, the American Stock Exchange index closed down 6.16 points at 780.66, and the Russell 2000 index of smaller companies ended up 14.90 points at 393.79.
Advancing issues outnumbered decliners by a 3-to-1 margin on the New York Stock Exchange, with 2,414 up, 808 down and 156 unchanged.
NYSE volume declined to 1.73 billion shares from 2.30 billion in the previous session, and Nasdaq volume decreased to 2.05 billion shares from 2.61 billion.
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