RUMOR MILL
Friday, May 12, 2000
NASDAQ REBOUNDS
For Investors, The Roller Coaster Ride Continues—And May Not End Any Time Soon
After taking a beating the previous three days—sinking 11% in that time—the Nasdaq rebounded yesterday, gaining 114.85 points, or 3.39%. The Nasdaq had dropped 200 points on Wednesday (5/10).
The Dow Jones also rebounded with a strong 1.72% gain, more than making up for Wednesday's losses.
Even though tech stocks such as Dell Computer—which announced stronger-than-expected first-quarter earnings—and Intel had strong days of trading, the roller coaster ride of the Nasdaq doesn't appear to be ending any time soon.
"I still wouldn't be surprised to see us retest our lows," said Warren Epstein, head trader at Richard A. Rosenblatt. "When you go down 200, up 200, down 200, up 200, which is what we are going through, it is clearly a market that is looking for direction."
In early trading today, the upward trend continued for both the Nasdaq and Dow Jones indexes. At presstime, the Nasdaq had gained 115 points. The Dow was up 80 points.
