Wall Street Beat: Tech shares up for Q3, but face uncertainty

28.09.2012

The overall jump in tech shares in the third quarter, however, likely has more to do with moves on the part of central bankers in the U.S. and Europe to spur their respective economies, than it does with the performance of any particular tech vendor. The tech-heavy Nasdaq, the Dow Jones Industrial Average, representing large companies, and the broad-based S&P 500 all closed Friday up for the quarter.

The U.S. Federal Reserve's announcement earlier this month that it would launch the so-called "QE3," a third round of "quantitative easing," was widely perceived as fueling a general run up in stocks. The Fed said it would buy bonds and possibly other assets until the unemployment rate eases.

Meanwhile, the European Central Bank has promised to buy the bonds of debt-ridden nations in return for budget-cutting austerity measures.

But protests over European austerity measures in recent days in Spain and Greece raise questions about whether politicians will be able to push through budget cuts, raising uncertainty about the rest of the year.

Meanwhile, a slump in the markets this week was widely ascribed to actions of investors cashing in shares to take profits before the U.S. economy hits the fiscal cliff. The S&P 500 index, for example, has declined eight of the last nine days, dropping by 6.48 to close at 1,440.67 Friday.