The Nasdaq index reached a new high and the Dow Jones Industrial Average surged today after a report showed that wage pressures are easing.
The Dow gained 247.12, or 2.24 percent, to close at 11,286.18. At one point during the day, the Dow had gained more than 300 points.
The tech-heavy Nasdaq jumped 67.85 points, or about 2 percent, to close at 3,520.63. It crossed the 3,500 mark
just three weeks after it surpassed 3,000. Earlier in the day the Nasdaq was up more than 100 points.
The S&P 500 added 24.26 points, or 1.7 percent, closing at a record high of 1,433.3.
The CNET technology index soared 64.75 points to 2,661.89. Some of the tech
stocks participating in today's rally included: IBM, up 7.3 to 112.56; Apple Computer, up 4.81 to 115; Atmel, up 4.38 to
52.44; Yahoo, up 7.19 to 253; and Microsoft, up 1.31 to 96.12.
The rally was sparked by two jobs-related reports. The Labor Department
reported that average hourly wages rose 0.1 percent last month, the slowest
pace in three months and less than what economists expected.
In addition, the government reported that the U.S. unemployment remained at
4.1 percent for the second
Labor costs are closely watched by investors because they account for about
two-thirds of consumer prices. If the Federal Reserve perceived that consumer
prices are rising rapidly, it would likely raise interest rates and put a
damper on the red-hot stock market. As a result, today's wage report was
interpreted as reducing the likelihood that interest rates will be increased
in the near future.