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 The BBC has just done more to eradicate ‘terrorism’ than all our wars since 9/11
- 2 Dog thinks owner is drowning in lake, dives in and tries to pull him out
- 3 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 4 Chilling drone footage captures Auschwitz ahead of 70th anniversary of liberation
- 5 Phil Neville backtracks on Tomas Rosicky 'I'd smash him' comments from Match of the Day 2
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Greece elections: Greek PM Alexis Tsipras takes aim at 'neo-liberal' Europe as country gears up for prolonged austerity battle
Auschwitz liberation 70th anniversary: Woman sent to three Nazi death camps describes surviving gas chamber
Pornhub star Mia Khalifa receives death threats after being ranked the site's top adult actress
Prince Philip set to be knighted by Australia: Celebrate by reading his greatest gaffes
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
Leaked documents show Ukip leaders approve NHS privatisation once it becomes more 'acceptable to the electorate'
iJobs Money & Business
£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
£25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...