Stocks climbed yesterday after the ever-influential International Business Machines, the world's biggest computer maker, lifted Wall Street's mood with surprisingly strong quarterly results.
The good news from "Big Blue" combined with fresh evidence of a cooling US economy spurred hopes for more aggressive interest-rate cuts by the Federal Reserve.
The Nasdaq composite index, dominated by leading tech stocks, ended up 85.64 points, or 3.19 per cent, at 2,768.42. The Dow Jones Industrial average rose 93.94 points, or 0.89 per cent, at 10,678.28. It was the Nasdaq's strongest finish since December 13th, and the Dow's highest close since January 4th.
IBM shares closed at a level unseen since mid-October, with a $11.63 gain, or 12 per cent, at $108.31 (€114.57). The IBM rally accounted for 80 per cent of the Dow's rise.
Intel was the Nasdaq's most heavily traded stock, up $1.69 at $32.19 (€34.05), even though earlier in the week it offered a poor sales outlook and its quarterly earnings just squeaked past Wall Street's forecasts.
