A STRONG rally in technology shares pulled Wall Street higher yesterday, erasing early losses that were tied to a sharp and surprising rise in durable goods orders in the US.
The Dow Jones industrial average rose 4.53 points to close at 6,880.70, after falling nearly 30 points early in the day.
The recently battered Nasdaq composite index was up sharply, drawing strength from the likes of Microsoft and Intel.
Stocks fell at the opening after the Commerce Department reported an unexpectedly strong 1.5 per cent increase in orders for durable goods last month. The figure reinforced investors fears that Tuesday's increase in interest rates by the Federal Reserve would be the first of several.
The central bank increased the federal funds rate as a pre emptive move to stop the strong economy from setting off inflation. But if data like the durable goods orders continued to show strong growth, Fed governors were likely to keep tightening, traders said.
