Tech Stocks on the Rebound Through Mid-Week Trading
I was so wrapped up in the AOL hoopla yesterday that I forgot to mention how well technology stocks are doing so far this week.
Sure, today's trading session wasn't exactly stellar: Microsoft, Apple, AOL and others all lost ground - but only by a little.
Monday and Tuesday were much friendlier to tech investors, many of whom are pinning big hopes on the Federal Reserve and it's decision to infuse the banking industry with $200 billion in capital in an effort to get borrowers and lenders back on the financial dance floor together and into each other's arms.
Shares of Apple, Sun Microsystems, Electronic Arts, Intel and AMD all rose by more than five percent during the two days, bumping up the Nasdaq Composite Index jump by four percent. Cisco and Microsoft saw their stock prices rise by 4.84 percent, and 4.39 percent, respectively.
Reports CBS Marketwatch, "Experts said Wall Street was reacting favorably to the Federal Reserve’s announcement that it would inject up to $200 billion in the nation’s banks and brokerage firms to shore up the credit markets as well as investor confidence.
Still, analysts predicted that the market will remain volatile during the coming months.
“This was a very oversold market, and today we’re just seeing a short-covering relief rally,” Ram Kolluri, president at Global Investment Management, told CNNMoney.com. “We’re not off to the races now.”
Still, it's better than nothing.
