Technology sector leads Wall Street’s rally

November 27th, 2008 - 6:10 am ICT by IANS  

New York, Nov 27 (Xinhua) Wall Street continued its rally Wednesday as investors snap up technology stocks despite dismal economic data. General Motors and Ford Motor rallied strongly, as investors speculated that the US Congress might approve the bailout plan of auto companies next month.

The rise in technology and auto shares helped reverse early decline of major indexes spurred by downbeat economic data.

The US Commerce Department Wednesday reported that orders for durable goods dropped by 6.2 percent last month, more than double the three percent decline economists had expected.

Meanwhile, the Commerce Department also reported that consumer spending plunged by one percent in October, even worse than the 0.9 percent decline that had been estimated. The largest decline in consumer spending since the 2001 terrorist attacks worried investors, as the consumer spending accounted for two thirds of the nation’s economy.

Investors got confidence after president-elect Barack Obama pledged he would have a plan to deal with the nation’s economic crisis on his first day in office.

The Dow industrials rose 247.14, or 2.91 percent to 8,726.61 points. The S&P 500 advanced 30.29, or 3.53 percent, to 887.68. The Nasdaq composite index rose 67.37, or 4.60 percent, to 1,532.10.

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