On Wednesday, all three key indices of Wall Street had winded down the day sharply higher, snapping a three-day long losing streak as market participants appeared to be capitalizing on a buying window following a three-day long backlash of the tech stocks.
In point of fact, Wednesday’s strident rally in the Wall St. was almost entirely galvanized by a demand surge of the tech stocks, while Tesla Inc. stocks, which had been down by 34 per cent in September thus far, had surged as much as 10.92 per cent a day after its biggest intra-session percentage decline.
Among other tech stocks, top three publicly listed US tech companies such as Apple Inc., Microsoft Corp. and Amazon.com Inc. added more than 3 per cent. Apart from that, other gainers from the stay-at-home orders such as Facebook Inc.
and Alphabet Inc. also secured modest gains a day after the Nasdaq had confirmed a correction course.
Nasdaq likely to hold on to its 50-day moving average, say analysts
In tandem, Wednesday’s rally in the Wall St.
comes over the heels of an upbeat JOLTS survey data from the US Labour Department that said the US employers had registered 6.6 million job openings in July, however, a rise in the number of employees quitting jobs at almost all of the major sectors such as professional, retail and business industries had darkened the US labour market outlook.
Citing statistics, on the day’s Wall St. round off, Dow gained 1.6 per cent to 27,940.67 and S&P soared 2.02 per cent to 3,399.06, while the tech-heavy Nasdaq had mushroomed 2.71 per cent to wind down the day at 11,141.56.
Meanwhile, as Wall St. analysts appeared to be betting heavily on Nasdaq’s ability to hold on to a support level at its 50-day moving average, a chief investment officer at Cresset Capital Management in Chicago, Jack Ablin said, “It’s certainly a massive, surprising rebound.
On one level it looks speculative but on another it is almost defensive because we know these companies will survive no matter what COVID throws at us. ”