Tech shares rally as ECB speeds bond purchases

NEW YORK: Tech shares rallied early Thursday, leading the overall US market after the European Central Bank announced it would accelerate bond purchases in response to worries over higher interest rates.

Shares of Apple, Facebook and Netflix were all sharply higher as the tech-rich Nasdaq was back on the upswing. The Dow has generally outperfomed the tech-rich index in recent weeks as investors have focused on companies that could prosper as Covid-19 vaccines help the economy reopen.

New applications for US jobless aid dropped last week to a level not seen since late last year, the government reported before markets opened, a positive sign ahead of the implementation of President Joe Biden's $1.9 trillion stimulus package Congress approved on Wednesday.

Meanwhile, the ECB said it would speed emergency bond purchases, aiming to prevent "a tightening of financing conditions" while the eurozone economy is still fragile.

About 30 minutes into trading, the Dow Jones Industrial Average was up 0.7 percent at 32,523.41, adding to Wednesday's record close.

The broad-based S&P 500 gained 0.9 percent to 3,932.65, while the Nasdaq Composite Index jumped 1.6 percent to 13,275.31.

Among individual companies, Oracle fell 8.4 percent on disappointment over its earnings forecast, despite reporting better-than-expected quarterly results.

AMC Entertainment shot up 6.4 percent after executives offered an optimistic outlook on the movie theater business as coronavirus vaccines become more widespread.

Boeing rose 3.1 percent after Reuters reported it is close to a new agreement to sell 737 MAX jets to Southwest Airlines. Southwest rose 1.2 percent.