NEW YORK, March 11 — Tech shares rallied early today, leading the overall US market after the European Central Bank announced it would accelerate bond purchases in response to worries over higher interest rates.
Shares of Apple, Facebook and Netflix were all sharply higher as the tech-rich Nasdaq was back on the upswing. The Dow has generally outperfomed the tech-rich index in recent weeks as investors have focused on companies that could prosper as Covid-19 vaccines help the economy reopen.
New applications for US jobless aid dropped last week to a level not seen since late last year, the government reported before markets opened, a positive sign ahead of the implementation of President Joe Biden’s US$1.9 trillion (RM7.8 trillion) stimulus package Congress approved yesterday.
Meanwhile, the ECB said it would speed emergency bond purchases, aiming to prevent “a tightening of financing conditions” while the eurozone economy is still fragile.
About 30 minutes into trading, the Dow Jones Industrial Average was up 0.7 per cent at 32,523.41, adding to Wednesday’s record close.
The broad-based S&P 500 gained 0.9 per cent to 3,932.65, while the Nasdaq Composite Index jumped 1.6 per cent to 13,275.31.
Among individual companies, Oracle fell 8.4 per cent on disappointment over its earnings forecast, despite reporting better-than-expected quarterly results.
AMC Entertainment shot up 6.4 per cent after executives offered an optimistic outlook on the movie theater business as coronavirus vaccines become more widespread.
Boeing rose 3.1 per cent after Reuters reported it is close to a new agreement to sell 737 MAX jets to Southwest Airlines. Southwest rose 1.2 per cent. — AFP
