Technology stocks lead rally on Wall Street

Dow Jones: 10,808.71 (+153.41) Nasdaq: 2,404.82 (+68.99) S&P 500: 1,123.95 (+24.72)The S&P 500 brushed up against a bear market yesterday, but investors rushed in to buy technology and other beaten-down sectors and the index posted its largest gain in more than a week.

The broad US market index has fallen nearly 18 per cent in the past four months, hurt by sluggish economic growth worldwide and ballooning deficits in Greece and other euro zone nations.

But the depth of those losses brought in bargain hunters late in yesterday’s session.

Chip makers and large-cap technology stocks led the way, even with bellwether Apple dropping 0.6 per cent after the unveiling of its latest phone did not live up to the hype.

Apple shares, earlier, fell more than 5 per cent.

“We’re buying some stocks, sticking to companies with strong balance sheets, with global if not emerging market focus, certainly not in the financial services area,” said Kim Forrest, senior equity research analyst at Fort Pitt Capital in Pittsburgh.

“We’re looking for opportunities to buy for holding at reduced prices,” she said. “The sad fact is that we don’t know what tomorrow brings.”

The Dow Jones industrial average gained 153.41 points, or 1.44 per cent, to 10,808.71 at the close.

The Standard & Poor’s 500 Index rose 24.72 points, or 2.25 per cent, to 1,123.95.

The Nasdaq Composite Index climbed 68.99 points, or 2.95 per cent, to 2,404.82.

The market pared losses before midday after reassuring comments from Federal Reserve chairman Ben Bernanke, who told Congress the Fed was prepared to take more steps to help a fragile recovery.

France and Belgium came to the rescue of heavy sovereign debt holder Dexia in the first government bailout of a European bank in the euro zone debt crisis. Traders cited talk that European finance ministers agreed to prepare action to safeguard their banks as helping the market bounce back late.

Morgan Stanley shares gained 12.3 per cent to $14.01 but are still off 48.5 per cent this year.

Bank of America rose 4.2 per cent to $5.76.

Among Nasdaq advancers, shares of Sears gained 11.7 per cent to $63.94. – (Reuters)