""The real fear here is that the Fed will crash the U.S. economy into a recession,"
quicken.com
Market Snapshot:
Dow, Nasdaq power
ahead
By Julie Rannazzisi, CBS MarketWatch
Last Update: 5:35 PM ET May 24, 2000
NEW YORK (CBS.MW) -- A wave of buying in a
cluster of big-name tech stocks late in the
session propelled the Nasdaq to sharply higher
levels Wednesday, ending a five-day losing
streak.
It was a day of incredible volatility, as the major
averages changed direction swiftly and furiously,
a glaring reflection of investors' continued
uncertainty over interest rates and valuations.
"The lows set Wednesday and the crescendo of
pessimism heading into those lows suggest
we've established a good bottom in the short
term," said Scott Bleier, chief investment
strategist at Prime Charter.
However, Bleier expects the market to trade
defensively until the next central bank meeting at
the end of June. "The real fear here is that the
Fed will crash the U.S. economy into a
recession," he said.
While Wednesday's high volume lends credibility
to the upward move, Donald Selkin, chief market
strategist at Joseph Gunnar, said the market
needs to perceive that the current tightening
cycle is over before rallies can have solid legs................ |
