Technology and Energy Stocks Strengthen U.S. Stock Indices

Optimistic estimates regarding the performance of technology companies spurred purchases of technology stocks on Wall Street on Tuesday, while rising oil prices boosted energy stock prices, resulting in an increase in stock index values.

The New York Dow Jones index rose by 0.7 percent, to 13,449 points. The S&P index gained just over one percent, to 1,489 points. The technology Nasdaq increased by 1.3 percent in value, closing trading at 2,630 points. Among the biggest gainers was the stock of technology company Apple, which strengthened by 4.1 percent. The reason for this was an analyst’s estimate that the company could exceed its sales targets for iPhones in the second quarter. Furthermore, the stock of internet search engine Yahoo rose by 5.5 percent, as Bear Stearns brokers assessed that the company’s stock is a good investment, considering the prospects for its further development. Technology companies, which are mostly lightly leveraged, have benefited during the last few days of trading due to the view that this sector could be a safe haven for investors’ money while the mortgage market crisis pressures the prices of financial stocks and other sectors of the economy.

"There is quite good demand for technology stocks, which is not surprising. I think technology companies are performing well, even in conditions of slowing economic growth," said Owen Fitzpatrick from Deutsche Bank Private Wealth Management. Furthermore, energy stock prices on average strengthened by 2.1 percent, to the highest level in the last approximately five weeks. The reason for this is the increase in the price of a barrel of oil by 1.4 percent, to $75.08. The rise in Deutsche Bank’s stock prices and the strengthening expectations of interest rate cuts in the U.S. have delighted European investors and spurred stock purchases. The London FTSE index rose by one percent, to 6,377 points. The Frankfurt DAX also strengthened by the same amount, to 7,722 points. (H)