Nasdaq has one of its best days ever as bargain hunters push stocks higher

Associated Press

NEW YORK — Stocks rebounded today from a selloff the day before as bargain-hunting investors helped push the Nasdaq composite index up more than 240 points today, one of its best one-day performances ever.

The Dow Jones industrial average closed up 157.60 at 10,192.18, according to preliminary calculations, a marked contrast to its 379-point plunge the previous day — its fifth-worst day ever in terms of point declines.

Broader stock indicators were also higher. The Standard &amp Poor’s 500 index finished up 44.39 to 1,374.17.

Meanwhile, the Nasdaq composite index surged 242.09 points, or 7.87 percent, to 3,316.77. It was the Nasdaq’s third-highest one-day point gain and second highest one-day percentage gain and came a day after the Nasdaq closed at its low point for 2000.

"Following the fifth-worst drop ever and amid exploding Mideast tensions, the market appears oversold to some. The U.S. economy is still strong, consumer confidence remains high and productivity growth remains in gear," said Alan Ackerman, senior vice president at Fahnestock.

In addition, the technology sector got a boost today from PMC-Sierra, Juniper Networks and Gateway, all of which beat analysts’ expectations.

PMC Sierra rose $32, or 20.2 percent, to $190.44, and Juniper Networks surged $28.89, or 14.5 percent, to $228.50 in Nasdaq trading. Gateway rose $9.48 to $53.11 in trading on the New York Stock Exchange.

On Thursday, stocks plunged over worries about the escalating violence in the Mideast and after retailing giant Home Depot became the latest well-known company to warn that earnings wouldn’t meet expectations.

But during today’s session, stock prices rose despite new economic data that could re-ignite inflation worries.

Wholesale prices shot up 0.9 percent in September, the sharpest increase in seven months, led by big jumps in the costs of gasoline and heating oil, according to the Labor Department. Car prices posted their biggest increase in five years and food costs rose the first time in five months.

Wholesale prices had fallen in August, however, a factor that offset concern for the September figures.

Today’s move higher was attributed by analysts to investors seeking to purchase stocks at bargain prices following the Thursday’s performance.

Most investors believe earnings warnings will continue to plague the markets, according to Ackerman. "But on a highly selective basis, this may be a good time to do some bargain hunting," he said.

Widely held technology stocks, which were hurt Thursday based on long-running concerns for profit growth in the wake of a string of earnings warnings and disappointing third quarter results, moved higher today.

Compaq Computer closed up $2.66 to $25.20, and electronics company Nokia gained $3.69 to $33.13 on the NYSE.

Bellwether Nasdaq stocks also rose. Intel was up $3.25 to $40.38, and Cisco Systems rose $6.25 to $56.06.

Advancing issues slightly outnumbered decliners on the NYSE, where volume came to 1.22 billion shares, down slightly from Thursday’s pace.

The Russell 2000 index rose 13.85 to 476.82.

Copyright ©2000 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

LifeWise local co-directors Darcie Hammer and Sarah Sweeny talk about what a typical classroom routine looks like on Monday, April 14, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Everett off-campus Bible program draws mixed reaction from parents

The weekly optional program, LifeWise Academy, takes children out of public school during the day for religious lessons.

Protesters line Broadway in Everett for Main Street USA rally

Thousands turn out to protest President Trump on Saturday in Everett, joining hundreds of other towns and cities.

An EcoRemedy employee checks a control panel of their equipment at the Edmonds Wastewater Treatment Plant on Thursday, April 17, 2025 in Edmonds, Washington. (Olivia Vanni / The Herald)
Edmonds launches technology to destroy PFAS

Edmonds is the first city in the country to implement… Continue reading

Over a dozen parents and some Snohomish School District students gather outside of the district office to protest and discuss safety concerns after an incident with a student at Machias Elementary School on Friday, April 18, 2025 in Snohomish, Washington. (Olivia Vanni / The Herald)
Parents protest handling of alleged weapon incident at Machias Elementary

Families say district failed to communicate clearly; some have kept kids home for weeks.

Irene Pfister, left, holds a sign reading “Justice for Jonathan” next to another protester with a sign that says “Major Crimes Needs to Investigate,” during a call to action Saturday, April 12, 2025, in Arlington. (Aspen Anderson / The Herald)
Arlington community rallies, a family waits for news on missing man

Family and neighbors say more can be done in the search for Jonathan Hoang. The sheriff’s office says all leads are being pursued.

Mary Ann Karber, 101, spins the wheel during Wheel of Forunte at Washington Oakes on Tuesday, April 1, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Lunch and Wheel of Fortune with some Everett swinging seniors

She’s 101 and he’s 76. At Washington Oakes, fun and friendship are on the menu.

Connect Casino Road Director Alvaro Gullien speaks at an Everett City Council meeting to share community thoughts regarding affordable housing and preventing displacement of those that live along Casino Road on Wednesday, April 16, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
How will Everett’s comprehensive plan work in Casino Road?

Residents in the diverse, tight-knit neighborhood want “Investment without displacement.” The city’s plan will help achieve that, staff say.

Henry M. Jackson High School’s FIRST Robotics Competition championship robotics Team 2910 Jack in the Bot on Thursday, April 24, 2025 in Mill Creek, Washington. (Olivia Vanni / The Herald)
Mill Creek robotics team celebrates world championship win

The team — known as “Jack in the Bot” — came in first place above about 600 others at a Texas world championship event last week.

Trees and foliage grow at the Rockport State Park on Wednesday, April 3, 2024 in Rockport, Washington. (Annie Barker / The Herald)
Washington Legislature approves hiking Discover Pass price to $45

The price for a Washington state Discover Pass would rise by $15… Continue reading

The Washington state Capitol on April 18, 2025. (Photo by Jacquelyn Jimenez Romero/Washington State Standard)
Parental rights overhaul gains final approval in WA Legislature

The bill was among the most controversial of this year’s session.

Snohomish firefighters appeal vaccine suspensions to Ninth Circuit

Despite lower court’s decision, eight men maintain their department did not properly accommodate their religious beliefs during COVID.

A rental sign seen in Everett. Saturday, May 23, 2020 (Sue Misao / Herald file)
Compromise reached on Washington bill to cap rent increases

Under a version released Thursday, rent hikes would be limited to 7% plus inflation, or 10%, whichever is lower.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.