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Overnight Markets: US stocks soar on Fed minutes
by Himanshu Singh on Apr 10, 2014 at 04:29
Wall Street gained on Wednesday led by technology shares after minutes from the Federal Reserve's latest policy meeting eased concern about the timing of future interest-rate increases.
The Dow Jones industrial average surged 181 points or 1.11%, to end at 16,437. The S&P 500 gained 20 points or 1.09%, to finish at 1,872. The Nasdaq Composite added 71 points or 1.72%, to close at 4,184.
Fed policymakers were unanimous in wanting to do away with the thresholds they had been using to telegraph a policy tightening, according to minutes of a meeting last month that shed little new light on what might prompt an eventual interest-rate rise.
In the latest snapshot of the economy, Commerce Department data showed that US wholesale inventories rose at a slower pace of 0.5% in February, in line with expectations, after a revised gain of 0.8% in January.
Internet and biotech stocks were among the day's biggest gainers. Facebook Inc. climbed 7.3%, the most in the Standard & Poor’s 500 Index. LinkedIn Corp., which trades at more than 760 times reported earnings, increased 4.2%, while Twitter Inc. added 1.7%.
Regeneron Pharmaceuticals Inc. surged 6.9% as shares of biotechnology companies rallied the most in a year.
Alcoa Inc (AA.N) shot up 3.8% after the aluminum producer's earnings, excluding restructuring charges and other special items, exceeded analysts' expectations.
On the negative side, shares of Intuitive Surgical Inc (ISRG.O) slid 6.8% after the company estimated first-quarter revenue well below analysts' expectations mainly due to a 60% drop in sales of its flagship da Vinci robot system.
Shares of Blackstone-backed hotel chain La Quinta Holdings Inc (LQ.N) made a subdued market debut as investors took the view that the stock was fully priced in a crowded IPO market. The stock closed up 0.7% at $17.12.
In Asia, shares rose on Thursday after the Fed minutes eased concern about the timing of interest-rate increases in the world’s largest economy.
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