On Tuesday, a slew of stock indices in the Wall St. had eked out large gains with growth stocks leading the rally, as all three key indices in the Wall Street had witnessed a sweeping ‘buy-the-dip’ move from market participants following a latest leg of staggering downturns.
Apart from a gyration towards growth stocks following hefty declines in previous sessions, investors remained cautiously optimistic over US payrolls data scheduled to be released on Friday, which has every potentiality to penetrate a hawkish helium-balloon inflated by the US Fed’s September policy meet while prompting the US Central Bank’s to rethink its approach on a likely earlier-than-anticipated tapering of fiscal support for the economy.
On top of that, the US President Joe Biden had expressed a sheer confidence on US Fed Chair Jerome Powell about his latest actions, eventually helping out growth stocks since US Fed’s Powell had been among few Fed policymakers who had still been contemplating that a latest leg of blistering rise in inflation indicators would by wiped away much-earlier than anticipated.
Besides, nine of eleven sub-indices in S&P 500 had reported modest gains with financials, tech stocks alongside communication stocks paving the way towards a broad-based rally.
Wall St. rebounds sharply as tech stocks roar back
Citing statistics, in the day’s Wall St.
wind-up, trade-sensitive Dow gained 0.92 per cent to 34,314.67 and benchmark S&P 500 soared 1.05 per cent to 4,345.73, while tech-heavy Nasdaq was nudged up as much as 1.25 per cent to curtain the session at 14,433.83.
Meanwhile, addressing to a ‘buy-the-dip’ frenzy among investors, a chief executive officer of Longbow Asset Management in Tulsa, Jake Dollarhide, said, “We’re buying the dip, but the dip isn’t 10% anymore.
The dip is now 2%, or 4%. People are trained like Pavlov’s dog to buy the dip, which is reinforcing all of this”.