Nas­daq pow­ers to new all-time high of 5,132.95

The China Post - - WORLD BUSINESS -

The Nas­daq pow­ered to a fresh record Thurs­day, easily top­ping the prior all-time high in a broad rally that with­stood signs that a Greek debt de­fault could be mov­ing closer.

The Nas­daq Com­pos­ite In­dex surged 68.07 points (1.34 per­cent) to 5,132.95, more than 25 points above the May 27 record close. The Nas­daq also set a new in­tra­day record of 5,143.32, about 11 points more than the prior high set in March 2000, shortly be­fore the dot­com crash.

The Dow Jones In­dus­trial Av­er­age jumped 180.10 (1.00 per­cent) to 18,115.84, while the broad- based S&P 500 gained 20.80 (0.99 per­cent) at 2,121.24.

An­a­lysts at­trib­uted the rally largely to Wed­nes­day’s Fed­eral Re­serve pol­icy an­nounce­ment and pledge from Chair Janet Yellen that the U.S. cen­tral bank will raise in­ter­est rates from near-zero lev­els only grad­u­ally.

“The key take­away is that the Fed will move more slowly than they pre­vi­ously said,” said Chris Low, chief economist at FTN Fi­nan­cial.

The surge came de­spite a warn­ing from Greek Fi­nance Min­is­ter Yanis Varoufakis that “an ac­ci­dent” in the bit­ter dis­pute be­tween Greece and its EU-IMF cred­i­tors over un­lock­ing vi­tal bailout cash for Athens was draw­ing “dan­ger­ously close.”

That came as In­ter­na­tional Mon­e­tary Fund chief Chris­tine La­garde said progress in ne­go­ti­a­tions with Greece re­quired “adults in the room” in an ap­par­ent swipe at Greek of­fi­cials.

Low said he was “a lit­tle sur­prised” at the mar­ket’s shrug­ging re­sponse to Greece.

“Maybe we fully priced in Greece leav­ing the euro,” he added.

Large tech stocks to gain in­cluded Ap­ple (+0.5 per­cent), Ama­zon (+2.7 per­cent) and Google (+1.4 per­cent). Biotech stocks, such as Cel­gene (+4.2 per­cent) and Bio­gen (+2.7 per­cent), were also strong.

BioMarin Phar­ma­ceu­ti­cal surged 12.2 per­cent af­ter re­leas­ing pos­i­tive clin­i­cal re­sults of its Vosori­tide med­i­ca­tion for treat­ing hu­man dwarfism.

Fit­bit, the com­pany known for wearable de­vices pro­mot­ing healthy lifestyles, saw its shares surge 48 per­cent to US$29.68 fol­low­ing the big­gest ini­tial public of­fer­ing this year for the tech sec­tor. The IPO, at US$20 a share, raised up to US$732 mil­lion. The mar­ket value for Fit­bit was some US$4 bil­lion based on the IPO.

But soft­ware and net­work­ing gi­ant Or­a­cle fell 4.8 per­cent af­ter re­port­ing net in­come for the quar­ter end­ing May 31 of 78 cents per share, nine cents be­low an­a­lyst ex­pec­ta­tions. The com­pany said re­sults were marred by the strong dol­lar.

Bond prices fell. The yield on the 10-year U.S. Trea­sury rose to 2.34 per­cent from 2.32 per­cent Wed­nes­day, while the 30-year ad­vanced to 3.13 per­cent from 3.09 per­cent. Bond prices and yields move in­versely.

AP

A screen by the Mar­ket In­tel­li­gence Desk shows an in­tra­day high for the Nas­daq Com­pos­ite in­dex, at the Nas­daq Mar­ketSite in New York, Thurs­day, June 18.

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