The incremental rise the Nasdaq posted Tuesday proved to be a test run for a solid Wednesday rally led by software maker Oracle and chip behemoth Intel. The Dow Jones Industrial Average followed suit, posting a modest gain after a slow start.
Stories by Vishesh Kumar
The tech-heavy Nasdaq fell 6.17 percent and the Dow dropped 2.99 percent Tuesday after a slew of profit warnings and concerns that first-quarter earnings reports will be bad. Though the markets edged off the day's lows by closing time, investors had little reason to be optimistic.
Despite a near triple-digit loss, blue-chip investors probably felt thankful at the session close Thursday. After plunging almost 400 points and into bear territory - defined as a 20 percent fall from the recent high - the Dow Jones Industrial Average staged a modestly impressive run-up at the end of trading that made up for much of the day's losses. An even steeper late-day rally put the Nasdaq, which had been teetering in the red most of the day, squarely in the black.
After Monday's incredible sell-off, many investors were expecting a rally during Tuesday's session. They got one. The Nasdaq bounced back hard during trading Tuesday, crossing 2000 and ignoring bad news from a number of big players. It seems that investors are overlooking technology woes and think some shares are at bargain prices, despite the lack of fundamentals in the market.
The public markets remain tumultuous, but private equity keeps building up in hopes of better days. Boston's Thomas H. Lee Partners, a buyout specialist, announced a massive US$6.1 billion private equity fund, the largest in history. The company, which has some $12 billion under management, has been involved in transactions ranging from Fisher Scientific to Snapple.