NEW YORK — Tech stocks rebounded in a big way Wednesday, surging after bellwether Cisco Systems offered a bright outlook for the sector.
The tech-fueled Nasdaq composite (up 22.97 to 2,083.82) climbed 1.2 percent nearly an hour into the session. The Dow Jones industrial average (up 40.91 to 11,214.50) rose 0.4 percent and the broader Standard & Poor’s 500 (up 7.04 to 1,278.52) index added 0.6 percent.
Computer network equipment maker Cisco (up $2.16 to $19.45) reported better-than-expected quarterly results and issued a bullish sales forecast late Tuesday. Cisco shares surged 13 percent.
The solid results and bright forecast heartened investors who had been worried that corporate spending on technology would dwindle as economic growth slows.
The broader market also got a lift from corporate earnings, but gains were limited as investors continued to digest the latest decision from the Federal Reserve.
Dow component Disney (up $0.95 to $29.93) reported rosy results, sending its shares 3 percent higher. The company said quarterly earnings soared 39 percent.
Federated Department Stores (up $1.61 to $35.40), which owns Macy’s and Bloomingdale’s, said its quarterly profit also rose. The company also raised its outlook for the second half of the year. Shares gained about 5 percent.
The Fed held rates steady for the first time in two years Tuesday, but left the possibility of further rate hikes on the table.
Fuente: CNN, Grace Wong
