Archive for Tuesday, December 12, 2000

Nasdaq back above 3,000

Rally is tempered by continuing election worries

December 12, 2000


— The possibility of future interest rate cuts sent tech stocks surging Monday, lifting the Nasdaq composite index back above 3,000.

Blue chips struggled to keep up in light trading as Wall Street awaited a U.S. Supreme Court ruling that could potentially end the presidential deadlock.

"It's been a real up-and-down kind of day, subject to the whims of what people hear on TV" about the election, said Scott Bleier, investment strategist for Prime Charter Ltd.

But, he said, "the fact is that the market's entire tone has improved dramatically since the Fed ... basically told everybody that the slowdown we're seeing is not going to be allowed to dive into a recession."

The Nasdaq closed up 97.67 at 3,015.10. The last time the index traded at or closed above 3,000 was Nov. 17.

Blue chips had a rockier day. The Dow Jones industrial average ended the day up 12.89 at 10,725.80 after changing direction several times during the course of the day.

After weeks of shunning the tech sector as too risky, investors have resumed buying the stocks, many of which are now trading at less than half their 52-week highs.

Microsoft rose $3.63 to $58.06; the battered chip sector also surged, led by Intel, up $3.44 at $37.44.

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