S&P 500 Jumps as Investors Swoop In on Tech After Rout By Investing.com
By Yasin Ebrahim
Investing.com – The S&P 500 rebounded Tuesday as investors took advantage of Monday’s selloff to load up on tech stocks.
It gained 1% and added 0.9% (311 points) to its value. The Nasdaq rose 1.3%
Facebook (NASDAQ 🙂 gained 2% on Monday after recovering service from a six hour outage.
While sentiment about the Facebook company continues to be questioned amid continuing concerns over potential regulation, whistle blower Frances Haugen testified before Congress, that Facebook’s products “harm kids, stoke divide, and weaken America.”
Tech dip-buying continues even though Treasury yields continue to rise, with the 10-year trending higher than 1.5%.
The recent drop in tech stocks saw investors also take advantage, including Alphabet (NASDAQ) and Microsoft (NASDAQ), as well as Amazon.com (NASDAQ), Alphabet (NASDAQ), and Apple (NASDAQ).
Technology’s day of gains didn’t ignite the normal value to growth cycle as cyclical stocks also rose strongly, led by financials such as banks.
Goldman Sachs (NYSE:), Charles Schwab (NYSE:), Bank of New York Mellon(NYSE:) saw more than 2% increase.
Data showing an unexpected increase in U.S. service activity in August also helped boost cyclical stocks
Jefferies (NYSE) stated in a note that while we had anticipated the index continuing to slide lower this month but that the service sector was showing remarkable strength and resilience.
Even though oil prices rose after major producers stopped increasing production, energy lag the overall market.
“Many had hoped that OPEC+ will increase oil output and reduce the world’s supply crisis. The group, however, opted to stick to its original outline of gradually releasing 400,000 additional barrels of oil per month despite calls from world leaders, including the White House, to bring more crude onto the market,” Stifel said in a note.
Cryptocurrency-related stocks including Marathon Digital (NASDAQ:), Coinbase Global Riot Blockchain (NASDAQ) and (NASDAQ:), were both pushed higher due to a rise in bitcoin, as the most popular cryptocurrency topped $50,000.
PepsiCo’s (NASDAQ:) earnings were up close to 1%. This was after the snack and beverage giant reported quarterly results which beat the bottom and top lines. These numbers were supported by PepsiCo’s strong performance in North American beverage.
In other news, Johnson & Johnson (NYSE:) requested emergency authorization for its Covid booster from the Federal Drug Administration.
Washington continued to be stuck over the debt ceiling, with Senator Majority Leader Chuck Schumer reminding that Democrats won’t go it alone in raising the debt limit prior to the Oct. 18 deadline.