Industrials Spurt 57.44, Bonds Climb --- Greenspan's Words Help Calm Markets; Dollar Finishes Mixed
AuthorAffiliation Staff Reporter of The Wall Street Journal</br></br>The Dow Jones Industrial Average gained 57.44 to 5515.97, snapping a four-session slide, and more than erasing Tuesday's 44.79-point decline. The industrial average remains more than 85 points from its record 5601.23 hit on Feb. 13.</br></br>Broader measures also gained. The Nasdaq Composite Index, boosted by powerful gains in technology stocks, soared 13.61 to a record 1096.85; Standard & Poor's 500-stock index gained 7.45 to 648.10; and the New York Stock Exchange Composite Index rose 3.39 to 345.66.</br></br>Traders said Mr. Greenspan sounded less-threatening to the markets in his second day of testimony before Congress. Just the day before, many traders focused on what they said were Mr. Greenspan's hints in testimony that the Fed was done cutting interest rates -- at least for a while. Though his words changed little yesterday, analysts determined that the Fed chief did indeed see significant weakness in the economy and would consider further reductions in interest rates.</br></br>Shortly after Mr. Greenspan's testimony began yesterday, stock and bond prices shot higher. But the move fizzled at the conclusion of Mr. Greenspan's statements. While bonds failed to reignite, stock prices found a second wind to close the session strongly.