Technology Investors Help Calm “Fiscal Cliff” Panic

Technology Investors Help Calm “Fiscal Cliff” Panic

The Standard and Poor 500 hit its biggest high since October despite impending "fiscal cliff" danger, thanks to investments and rising shares in technology.

Apple gained 3.1 percent and lifted the Nasdaq seeing how it is the largest U.S. company by market value. Apple seems to be recovering after a week where investors took profits before the impending tax rise that will start in 2013.

Other stocks seem to rise in the tech field, such as Texas Instruments who gained 3.8 percent and Microsoft who rose by 1.8 percent, helping calm "fiscal cliff" worries.

The Dow Jones industrial average rose by 0.85 percent, the Standards and Poor 500 Index was up by 0.93 and The Nasdaq Composite Index rose by 1.37 percent.Tom Donino from First New York Securities had this to say “I see a lot of buying in tech, and that’s taking the whole market up with it”.

There seems to be cause for celebration, however, experts advise to exercise cautious optimism as negotiations about the “fiscal cliff” are improving but are not anywhere near settled as House Speaker John Boehner and President Barack Obama have not yet reached an understanding.

The political instability also seems to have kept investors from making any aggressive bets. Still stocks seem to be rising across the board and things seem to progress well even though the "fiscal cliff" is drawing near, as the central bank will announce a new session of bond purchases as a replacement for its “Operation Twist” that expires at the end of 2012.

Posted by James Fried on Wednesday December 12 2012, 4:54 AM EST. Ref: Reuters. Link. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0