Stocks surge in late afternoon bargain hunting |

Stocks surge in late afternoon bargain hunting

NEW YORK – Technology and blue chip stocks snapped back Tuesday as bargain hunters capitalized on the damage caused by Wall Street’s worst day this year.

But analysts cautioned against reading too much into the advance, which came primarily on heavy trading late in the session. Although the Nasdaq composite index closed above the 2,000 benchmark, recovering from Monday’s selloff, it remains near its lowest level in more than two years.

Meanwhile, the Dow Jones industrials’ gains barely cut into its 436-point loss in the previous session.

”The rebound we saw was very positive, but this isn’t over,” said Brian Belski, fundamental market strategist at US Bancorp Piper Jaffray. ”We’re going to be back and forth here for a while.”

The Nasdaq closed up 91.40 at 2,014.78, a 4.8 percent gain, taking back much of Monday’s 129-point loss.

The Dow rose 82.55 to 10,290.80, or less than 1 percent, in choppy trading. The Standard & Poor’s 500 index rose 1.50 percent, gaining 17.50 to 1,197.66, but is still in bear market territory at more than 20 percent off its high.

The rebound’s staying power was questionable, market watchers said, because the outlook for company profits remains dismal and investor sentiment is shaky.

Still, there were some signs that, at least for the moment, stocks and stock prices might be stabilizing.

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