Wall Street Rally Extends Nasdaq to Multi-year High

Bikram Pandey
26 Mar, 2012
New York City

U.S. indexes surged to a new multi-year highs and the Nasdaq composite index climbed to a new high since November 2000. Healthcare stocks were higher as the U.S. Supreme Court began hearings on the healthcare reform.

[R]4:15 PM New York – U.S. indexes surged to a new multi-year highs and the Nasdaq composite index climbed to a new high since November 2000. Healthcare stocks were higher as the U.S. Supreme Court began hearings on the healthcare reform.[/R]

U.S. indexes surged after three days of declines in broader market averages. Pending home sales index increased less than expected in February but better than expected confidence read in Germany lifted market averages to new multi-year highs.

Also, comments from Fed Chairman Ben Bernanke suggested that the central bank is prepared to pursue accommodative policy to sustain employment growth. The comments fuelled a rally in indexes on both sides of the Atlantic.

The S&P 500 index added 1.2% and the Nasdaq advanced 1.8%. The indexes in Germany added 1.2%, in the UK gained 0.8% and France gained more than 0.7%.

Healthcare stocks added after the Supreme Court heard the first day of argument on the constitutionality of healthcare reform signed by President Barack Obama. Aetna, WellPoint and UnitedHealth Group gained more than 2.6%.

Crude oil and copper prices eased and German business confidence was better than expected. Spain and Italy were in focus ahead of general strikes this week.

European indexes edged higher after German sentiment improved to an eight-month high in March. The euro area leading economic index rose in February. Italian Prime Minister Mario Monti warned that the Spanish financial situation could lead to a resurgence of the debt crisis.

The benchmark indexes in Tokyo pared gains after banks and utilities trimmed the earlier gains. Resources linked stocks led the upsurge in the morning following a rise in copper and crude oil prices.

Australian markets traded lower after resources linked stocks, banks and retailers closed down. Bank of Queensland was halted after it estimated $91 million in first losses and said it plans to raise $450 million in an offering.

Commodities, Bonds and Currencies

The yields on 10-year U.S. bond decreased to 2.24% and 30-year U.S. bond edged higher to 3.32%.

The U.S. dollar edged down to $1.3342 to one euro and gained against the Japanese yen to 82.75 yen in New York trading.

Immediate delivery futures of Texas crude oil increased 29 cents to $107.17 a barrel and Brent crude futures rose 54 cents to $125.67. Futures of natural gas decreased 0.05 cents to $2.223 per mbtu and gasoline price added 3.09 cents to 341.60 cents a gallon.

In metals trading, copper added 8.50 cents to $3.89 per pound, gold surged $24.60 to $1,688.80 per ounce and silver gained 54 cents to $32.81.