Tech stocks - and the rest of the market - are rallying Wednesday morning, on the good news that the economy seems headed down the tubes. To the market, signs of bad news are actually good news, if it means the Fed is more likely to further reduce interest rates. Here is how the AP explains it:
The market was elated after Fed Vice Chairman Donald Kohn told the Council on Foreign Relations that recent financial turbulence has reversed some of the improvement seen in markets in previous weeks, and could squeeze credit for households and businesses. He said tight financial conditions may merit “offsetting” policy from the central bank.
The best way to celebrate a deteriorating economy, of course, is to buy yourself some technology stocks. The Nasdaq Composite is up 59.67, or 1.86%. As you would imagine, most key tech shares are higher:
- Google (GOOG) is up $6.71, or 1%, at $680.28.
- Apple (AAPL) is up $3.65, or 2.1%, at $178.46.
- Microsoft (MSFT) is up 32 cents, or 1%, at $33.38.
- Cisco (CSCO) is up 70 cents, or 2.6%, at $28.19.
- Intel (INTC) is up 90 cents, or 3.6%, at $26.01.
- Baidu (BIDU) is up $15.23, or 4.5%, at $356.57.
- Amazon (AMZN) is up $3.04, or $3.6%, at $88.63.
- EMC (EMC) is up 88 cents, or 4.9%, at $19.07.
- VMware (VMW) is up $7.94, or 10.2%, at $85.52.
- Advance Micro Devices (AMD) is up 23 cents, or 2.3%, at $10.38.