US stocks rally in morning trade

APRIL 17: The blue-chip Dow Jones industrial average, coming off early highs, to rise 60 points to 10,365. The 30-share Dow, home to some of the best-known corporate names in the United States, slid over 7 per cent last week amid inflation fears.

The prospect of higher interest rates to curb inflation shattered a fragile market, capping one of the most dramatic one-week slides in market history. The Standard & Poor’s 500-stock index on Monday was up 6 points at 1,363.

Taking a bullish stance, Thomas Galvin, chief investment officer at Donaldson, Lufkin and Jenrette, called stocks undervalued and rejigged his asset allocation. He boosted his stock holding to 90 per cent and cash to 10 per cent, wiping out his bond allotment, which had been at 15 per cent.