Dow surges ahead of Fed decision on rates
Tuesday 25 March 1997
The unexpected devil-may-care mood ahead of the Fed meeting took hold only in the last hour of trading when the industrial average surged.
Earlier in the day, it had hovered around the unchanged mark. Most economists expect the Fed Open Market Committee to agree a quarter-point interest hike at its monthly meeting in Washington.
The increase would represent the first tightening of monetary policy - indeed, the first change in interest rate policy of any kind - by the Fed in 15 months. The fizz on the Dow contrasted, however, with a rocky day on the Nasdaq, which slipped an ominous 11.43 points in what appeared to be a continuation of the fragility shown by most hi-tech stocks through last week.
Attention was focused on Microsoft which saw an almost 5 per cent drop in its stock value following news that it would not deliver an updated version of its super-popular Windows 95 system until after this year's Christmas shopping season.
The troubles at Microsoft had a ripple effect on several other tech stocks as traders worried about the consequences for the broader computer sector.
Commenting on the Nasdaq's decline, Tony O'Brien of AG Edwards said: "The correction started in stocks which were fundamentally defective or deficient and then moved into small-caps and mid-caps.
"Now you are correcting the big boys."
- 1 If you weren't afraid of flying before last week... you probably are now
- 2 Israel-Gaza conflict: The secret report that helps Israelis to hide facts
- 3 Students offered grants if they tweet pro-Israeli propaganda
- 4 Lauren Goodger calls for tougher laws on revenge porn after sex tape leaks online
- 5 Iraq crisis: End 'very near' for Christianity after Isis takeover, says Bishop
Israel-Gaza conflict: The secret report that helps Israelis to hide facts
A day in the life of Vladimir Putin: The dictator in his labyrinth
Opponents of Israel's military operation in Gaza are the real enemies of Middle Eastern peace
Were 'Poor Doors' added to mixed developments so wealthy residents don't have to go in alongside social housing tenants?
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
iJobs Money & Business
£40000 - £45000 per annum: Ashdown Group: An established professional services...
£600 - £650 per day: Orgtel: Conduct Risk Liaison Manager - Banking - London -...
£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...
£280 - £300 per day + competitive: Orgtel: Test Analyst, Edinburgh, Credit Ris...