Blue-chip stocks posted their biggest rise in a month yesterday, reversing steep losses, as Wall Street bet that good inflation news would encourage the Federal Reserve to whittle away again at interest rates and spur growth in the nation's floundering economy.
Technology stocks notched small losses, recovering from a more than 2 per cent tumble early in the day after analysts slashed their earnings forecasts for software giants like Oracle Corp.
But the weakness was enough to push the technology-heavy Nasdaq composite index down to its sixth straight losing session and placed the index at its lowest close in four months.
The Dow Jones industrial average climbed 117.69 points, or 1.14 per cent, to 10,416.25, after losing almost 1 per cent. Dow components, aluminum giant Alcoa Inc, up $1.12 to $37.01, and construction equipment maker Caterpillar Inc, up $1.30 to $53.65, helped the blue-chip gauge post its biggest rise since July 12th, The Nasdaq composite index dipped 6.85 points, or 0.35 per cent, to 1,956.47. Software makers Oracle, down 83 cents to $15.16, and Siebel Systems, off $1.48 to $28.29, dragged on the index after Goldman Sachs cut its earnings estimates.
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