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Computer industry

Wall Street Edges Higher Despite Fed Concerns

Strategic Insights

— 2 min read

The stock market saw a rally in technology shares on Friday, overriding concerns that the Federal Reserve would raise interest rates sooner than previously estimated. International Business Machines Corp. led gains in the Dow Jones Industrial Average after Barclays Plc upgraded computer hardware companies, citing an increase in demand for servers and storage. Google Inc. also saw a significant increase, with Credit Suisse Group AG boosting its price estimate and predicting a rebound in advertising for the search business. Meanwhile, the dollar strengthened after Federal Reserve Chairman Ben Bernanke indicated that the bank would tighten monetary policy once the economy improves, which weighed on stocks in early trading.

Key Takeaways:

  • The Dow Jones Industrial Average rose 37.26 to 9,824.13 on Friday, largely driven by gains in technology shares.
  • International Business Machines Corp. led the gains in the Dow Jones, after Barclays Plc upgraded computer hardware companies, citing an increase in demand for servers and storage.
  • Google Inc. climbed more than 1 percent as Credit Suisse Group AG lifted its price estimate and predicted a rebound in advertising for the search business.
  • The dollar strengthened against the yen and euro after Federal Reserve Chairman Ben Bernanke indicated that the bank would tighten monetary policy once the economy improves.
  • The U.S. Commerce Department reported that the trade deficit declined 3.5 percent to 30.7 billion U.S. dollars in August, as imports fell on lower oil demand.
  • Economists had expected the deficit to rise, not decline.
  • The Standard & Poor's 500 index added 2.96 to 1,068.44, and the Nasdaq rose 11.07 to 2,135.00.

Statistics:

  • The Dow Jones Industrial Average rose 37.26 to 9,824.13.
  • International Business Machines Corp. led gains in the Dow Jones, rising whooping [Data not explicitly stated in the source, skipping this point as per instructions].
  • Google Inc. climbed more than 1 percent.
  • The dollar strengthened against the yen and euro.
  • The U.S. trade deficit declined 3.5 percent to 30.7 billion U.S. dollars in August.
  • The Standard & Poor's 500 index added 2.96 to 1,068.44.
  • The Nasdaq rose 11.07 to 2,135.00.
  • The dollar strengthened after Federal Reserve Chairman Ben Bernanke indicated that the bank would tighten monetary policy once the economy improves.

Sources:

  • Xinhua (2009, Oct 09)
  • Comtex News Network (2009, no date specified)
  • Barclays Plc (no date specified)
  • Credit Suisse Group AG (no date specified)
  • Federal Reserve (no date specified)
  • U.S. Commerce Department (no date specified)
  • SmarTrend (no date specified)

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