Powerful Rally Holds Up as Debate on Future Continues

The Nasdaq Composite Index and the Dow Jones Industrial Average continued to soar through late morning trading and into the afternoon, as investors showed enthusiasm for a weaker-than-expected employment report. But some market watchers said fundamentals may not justify the gains.

Major Indices INDEX CHANGE % VALUE Dow 161.75 +1.5% 10,813.95 S&P 500 26.53 +1.8% 1475.34 Nasdaq 192.10 +5.4% 3774.60 Russell 2000 17.18 +3.5% 509.65 TSC Internet 65.96 +7.8% 915.88 NOTE CHANGE PRICE YIELD 10-Year Treasury 17/32 102 24/32 6.118%

"I'm not sure we haven't moved too far, too fast," said Matt Johnson, head of Nasdaq trading at Lehman Brothers. And Owen Burman, an equity portfolio manager at Riggs Investment Management, said the market "couldn't justify these prices two months ago and you certainly can't do it now."

Still, investors were ebullient. The Nasdaq lately jumped 192, or 5.4%, to 3775, having traded as high as 3790.36. The Dow was up 162, or 1.5%, to 10,814, off a high of 10,846.08. ...