Wall Street Ends Higher as Greece Fears Wane, Tech Shares Rally


Wall Street Ends Higher as Greece Fears Wane, Tech Shares Rally

US stocks ended higher with the Nasdaq Composite notching a record close as fears over a Greece exit from the European Union waned and technology shares in the US rallied.

Stocks were boosted by news from Greece that the Greek parliament had passed the austerity measures suggested by Greece’s creditors as part of their Cash for reforms deal.

Global stocks were lifted by comments by the president of the European central bank, Mario Draghi who said that the ECB was willing to expand its bailout to troubled Greek banks.

The president also expressed his confidence over Greece’s ability to pay back the $4.2 billion loan owed to the ECB.

Also adding to the market strength was better than expected economic data and corporate earnings for the second quarter of the year released earlier in the day.

A stream of corporate reports from different companies helped power the tech rally which spurred the Nasdaq Composite to a record close.

“There’s some framework to getting the deal done, and that’s the thing the market needs,” Bill Nichols, head of U.S. equities at Cantor Fitzgerald LP, told the Wall Street Journal.

“And earnings have been OK, and that’s giving a little bit of room for a rally.”

The Dow Jones Industrial Average jumped 70.04 or 0.4% to end at 18,120.5 points, the first time it has closed above 18,000 for two straight sessions since mid June.

The S&P 500 index jumped 16.89 points or 0.8% at 2,124.29 with nine of its ten key sectors trading higher.

The technology heavy Nasdaq Composite jumped added 64.24 points or 1.26% to end at its highest close ever spurred by a technology rally on better than expected results.

Netflix, EBay and Google surged more than 18%, 3.4% and 13% on better than expected earnings for the second quarter

“What this season confirms is that we are in a modest growth and modest inflation environment,” Scott Wren, senior global equity strategist at Wells Fargo Investment Institute in St. Louis, told Reuters.

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com