Dow's 500+-point jumps doesn't inspire panic-like buying

A more than 500-point gain in the Dow Jones Industrial Average DJIA, +2.50% and a near 3% surge in the technology sector, on the back of dovish comments the Federal Reserve Chairman Jerome Powell, wasn’t enough to spur panic buying. The Arms Index, a volume-weighted measure of breadth, tends to decline below 1.000 on broader-market rallies, as volume in advancing shares tends to increased disproportionately to volume in declining shares. When the Arms falls below 0.500, many consider a sign of panic buying. But with the Dow up 534 points and the SPDR Technology Select Sector ETF XLK, +3.50% surging 2.7%, with 61 of 65 equity components trading higher, the NYSE Arms is 0.762 and the Nasdaq Arms is at 0.938. The number of advancing stocks outnumbered decliners by a ratio of 3.76 to 1 on the NYSE and by a ratio of 3.38 to 1 on the Nasdaq, volume in advancing stocks was 82.9% of total volume on the NYSE and 77.9% of volume on the Nasdaq.

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Stocks close higher as Dow jumps more than 600 points on Powell’s dovish tone

U.S. stocks close higher Wednesday, with the Dow Jones Industrial Average surging more than 600 points, as investors interpreted Federal Reserve Chairman Jerome Powell’s comments on interest rates as dovish.

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