BIO Market News
Rising hopes of economic stimulus from Asia and a sharp two-day rally from highflying stocks helped bolster investor confidence.
The rally picked up some steam in afternoon trading, led by high-octane biotechnology and social-media stocks. The Nasdaq Biotechnology Index rose 2.4%. Those so-called momentum stocks have made a series of big swings in the first half of April, roiling the tech-heavy Nasdaq Composite.
But during the latest rebound, traders saw "real buyers come in" and buy shares of individual companies, said Viren Chandrasoma, managing director in equity trading at Credit Suisse Group AG CSGN.VX +1.86% . "I don't think it's fast money… it's really led by the stocks themselves."
"The Chinese data certainly corroborates the idea that the economy is slowing, but at the same time officials have become concerned enough" that more stimulus could be a possibility, said Dan Greenhaus, chief market strategist at New York brokerage firm BTIG.
Despite the recent volatile trading, U.S. stock benchmarks haven't given up much ground from their record levels hit on April 2. The S&P 500 has lost 0.5% this month, and is just 1.5% below its all-time high. The Dow industrials have held up better, down 0.2% this month and 0.9% from their record level.