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Dow Gains More Than 400 Points, Tech Stocks Benefit

Wall Street sees some upward momentum with jumps in companies working with chips, the Internet, networking, software, cable, and satellite services manufacturers.
The Dow Jones industrial average jumped 413 points, or 4.67%, Monday to close at 9,265.43. The Nasdaq Composite also rose, gaining 58.74, or 3.43%, to reach 1,770.03. The S&P 500 closed up 44.85 points, or 4.77%, closing at 985.40.

In contrast to Wall Street's daily roller-coaster rides last week, Monday's trading showed a relatively upward trend in the afternoon after slight dips in the morning across all three indexes. Trading levels were light and returned to late-September levels. Once again, the last hour proved busy, with the Dow moving more than 100 points as the closing bell neared. This time, the momentum was upward.

Several technology companies' stocks, including Amazon.com, eBay, Apple, Microsoft, IBM, Oracle, Cisco, and Dell, rose as well. Yahoo was down 4 cents, or 0.31%, to close at $12.86 per share. Technology stocks rose in all categories, including chips, the Internet, networking, software, cable, and satellite services manufacturers. AT&T and Verizon also rose after a week that was tough on telecommunications and cable providers.

The upswing comes as many companies prepare to release their third-quarter earnings reports. Last week, Google announced that its profits had increased by 26%, and there are many who believe that most large U.S. technology companies will survive whatever challenges remain in terms of the overall economy.

Federal Reserve Chairman Ben Bernanke spoke and seemed to soothe investors with promises of increased government spending to stabilize the credit market and the economy, in general. He also voiced support for a second economic stimulus plan. Democrats and President George W. Bush have also expressed support for a second stimulus package.

An Associated Press-Yahoo News poll released Monday showed that 33% of Americans fear job losses, 50% worry they will not make mortgage and credit card payments, and 70% are anxious over investment and retirement losses.

Global Insight forecast that unemployment could rise to 7.5% next year. It is currently at 6.1%.