Stocks rallied yesterday after a solid outlook from Cisco Systems, signs of stabilisation in the US services sector and hopes for more fiscal stimulus helped dispel the gloom hanging over Wall Street after last month's deadly attacks.
High-tech shares enjoyed much of the day's buying, helping the Nasdaq Composite Index rack up its biggest percentage gain in more than five months. The triple dose of bullish news for the moment pushed aside fears over the nation's fragile economy and likely US military retaliation following the September 11th attacks on the World Trade Centre and Pentagon.
A key index of services activity landed higher than economists' forecast, and President George W. Bush proposed up to $75 billion in additional pump-priming for the economy.
Cisco, the world's largest maker of Web gear, took sentiment up another notch by standing by financial targets. Cisco shares rose 21.52 percent, or $2.47, to $13.95. The rally added to gains on Tuesday after the Federal Reserve cut interest rates for a ninth time this year to boost the world's biggest economy.
