Modest gains on lacklustre Wall Street
Wall Street finished a lacklustre session with modest gains today as stronger-than-expected economic data helped stocks rebound slightly from their disappointment with the Federal Reserve’s latest policy statement.
The major indexes finished the week narrowly higher.
Wall Street started the third quarter quietly as investors recovered from the previous session’s sell-off.
The markets dropped sharply on Thursday as the Fed gave no indication it would stop its steady, gradual interest rate hikes.
The central bank also raised the nation’s benchmark rate a quarter percentage point to 3.25% on Thursday.
But some analysts felt the sell-off, which slashed nearly 100 points from the Dow Jones industrials, was overdone, and bargain hunters helped the markets recover today despite another surge in crude oil prices.
Strong manufacturing data and a bullish consumer confidence report helped the major indexes stay positive.
“Clearly cooler heads are prevailing today,” said Joseph Keating, chief investment officer at AmSouth Asset Management. “We’re seeing a far more rational response to the Fed, and yesterday’s sell-off is making for a pretty good buying opportunity.”
The Dow rose 28.47, or 0.28%, to 10,303.44.
Broader stock indicators were narrowly mixed. The Standard & Poor’s 500 index was up 3.11, or 0.26%, at 1,194.44, and the Nasdaq composite index gained 0.41, or 0.02%, to 2,057.37.
