Wall Street rebounded with the three major indexes reporting increases of over 1 percent overnight, as rate hike concerns eased following the release of the minutes of last month’s US Federal Reserve meeting, the Hong Kong Economic Journal reported Thursday.
The rally was also supported by a surge in biochemical and technology stocks, after the sectors took a heavy beating over the past week, the report said.
Some market watchers believe the bull-market run still has legs. On Wednesday the Dow Jones Industrial Average closed at 16,437.18, up by 1.11 percent or 181.04 points, while the Standard and Poor’s 500 went up by 1.09 percent or 20.22 points to 1,872.18. The NASDAQ surged 1.72 percent or 70.91 points to finish at 4,183.9.
Minutes of a March meeting of the Federal Open Market Committee revealed that many members believed the market had over-interpreted the Fed’s stance on increasing rates. The news, which was released during early trading hours on Wednesday, propelled US stocks further up, the newspaper said.
The NASDAQ Biotechnology Index climbed 4.1 percent, after dropping by as much as 17 percent since its new high on Feb. 25. Eight out of the S&P’s 10 industry indexes have reported increases, with the healthcare stocks index the biggest winner with a 2.1 percent growth during the day, the report said.
New York-based Holland & Co., which oversees more than US$4 billion of assets, said the bull market still has legs to it with valuations still looking reasonable, while the S&P indexes still have room for further growth, chairman Michael Holland was quoted as saying.
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