The return of corporate activity and hopes of a further cut in US interest rates next week helped to support another rally on Wall Street but investors remain concerned about the extent of a slowdown in economic activity.
News that AT&T was in talks about a possible merger with BellSouth and a ruling ordering Microsoft to reach a settlement with the US government restored some semblance of normality.
All eyes are now on the Federal Reserve which is due to meet on Tuesday to discuss interest rates. It is expected to sanction another 0.25 of a percentage point rate cut in a bid to provide support for the faltering economy. The Dow Jones Index achieved gains for the fourth day this week but still remains well below pre-September 11th levels. The Index closed at 8,831.92 while the Nasdaq composite was 1,498.55.
There was also better-than-expected news on the performance of the economy in the second quarter although it still signals a weak economy.
The US Commerce Department yesterday raised its estimate of growth in US gross domestic product to 0.3 of a percentage point for the three months to the end of June.
The White House said the second quarter figures were "just barely positive," adding that President Bush is concerned about a US economy that was "hurting."
