Tech stocks power S&P to high

The Washington Post Sunday - - MARKETS -

The tech rout that has kept traders on edge for weeks is fi­nally let­ting up. That’s prov­ing to be good news for the whole mar­ket.

Af­ter eras­ing al­most $400 bil­lion in eq­uity value at its worst point dur­ing the June sell­off, the Nas­daq 100 In­dex rose for six days, pulling within 1 per­cent of its record.

In the end, the Standard & Poor’s 500stock in­dex gained 1.4 per­cent to an all-time clos­ing high of 2,459.27, the Dow Jones in­dus­trial av­er­age climbed 1 per­cent, or 223.4 points, to 21,637.74, also a record, and the Nas­daq Com­pos­ite In­dex in­creased 2.6 per­cent to 6,312.47.

“In­vestors are grav­i­tat­ing back to­ward to a lot of the tech stocks,” said Peter Tuz, who helps man­age $350 mil­lion as pres­i­dent of Chase In­vest­ment Coun­sel. “The fact that lead­ers are re­gain­ing their strength is a good thing for the mar­ket. I hope the worst is over.”

Large spec­u­la­tors, mostly hedge funds, missed the rally in tech stocks as data re­leased from Com­mod­ity Fu­tures Trad­ing Com­mis­sion showed they cut net po­si­tions in Nas­daq 100 fu­tures for a fourth week.

The U.S. Trea­sury will sell $39 bil­lion of three-month bills and $33 bil­lion in six­month bills Mon­day. They yielded 1.05 per­cent and 1.13 per­cent, re­spec­tively, in whenis­sued trad­ing. It will also sell $20 bil­lion 52-week bills and four-week bills Tues­day. On Thurs­day it will also sell $13 bil­lion of 10-year TIPS.

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