Rally in tech stocks helped benchmarks snap out three-day drop on Wednesday. Investors clawed back to purchase tech stocks and this in turn pushed the Nasdaq to post its largest one-day point gain since April 29.
The Dow Jones Industrial Average (DJI) rose 439.58 points or 1.6%, to close at 27,940.47 and the S&P 500 rose 67.12 points, or 2% to close at 3,398.96. The Nasdaq Composite Index closed at 11,141.56, adding 293.87 points, or 2.7%. The fear-gauge CBOE Volatility Index (VIX) decreased 8.4%, to close at 28.81. Advancing issues outnumbered declining ones for 3.24-to-1 ratio on the NYSE and a 2.19-to-1 ratio on the Nasdaq favored advancers.
How Did the Benchmarks Perform?
All the 11 major sectors of the S&P 500 ended in the positive territory, and the technology sector rallied 3.4% posting its biggest one-day gain since late April 29. The broader index was also boosted by a more than 2.3% gain in the materials and consumer discretionary sector.
The Nasdaq that ended registering a 4.1% loss on Tuesday and marked its fastest ever fall from a record into correction territory clawed back to end 2.7% higher on Wednesday. The index was boosted by solid gains in major tech and related stocks.
Overall the S&P 500 posted two new 52-week highs and two new lows, while the Nasdaq Composite recorded 30 new highs and 20 new lows.
Recovery in Tech Help Markets Lift-Off
Technology and other work-from-home related stocks that had slumped in the past three trading sessions recovered some ground on Wednesday. In fact, tech stocks posted their best day in about four months and that helped the S&P 500 mark its best day since June 5, when it edged up 2.6%, while the Nasdaq hit its biggest one-day point and percentage gain since April 29, when it had surged 3.6%.
Electric car maker and tech giant Tesla, Inc. (TSLA - Free Report) jumped 10.9% on Sep 9 after registering its single worst day ever on Tuesday dropping 21%. Tesla carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Along with that, work-from-home winners Microsoft Corporation (MSFT - Free Report) , Amazon.com, Inc. (AMZN - Free Report) , Alphabet Inc. (GOOGL - Free Report) and Facebook, Inc. (FB - Free Report) also rebounded on Wednesday rising 4.3%, 3.8%, 1.6% and 0.9%, respectively. The aforementioned stock along with Apple Inc. (AAPL - Free Report) had lost about $1 trillion in market value over the last three days.
Jobs Opening in July
On Sep 9, the Labor Department reported that the businesses, governments and other organizations hired 5.8 million people in July, compared to almost 7 million in June. However, job openings rose by 617,000 to 6.6 million in July. The report highlights that companies have hired fewer people in July due to rise in new coronavirus cases even though they had listed more open jobs.
Overall, job openings had increased in July especially in retail, health care and construction. Retailers had also made changes in online operations and taken other steps to lure customers back to brick-and-mortar stores.
Stocks that Made Headline
Kansas City Southern Restores Key Forecasts on Volume Revival
With overall carload volumes having surged 50% (as of Sep 7, 2020) after hitting rock bottom in early May, Kansas City Southern (KSU - Free Report) reinstated its financial guidance for certain key metrics at the Cowen 2020 global transportation and sustainable mobility conference. (Read More)
United Airlines Cuts Q3 Guidance on Coronavirus Woes, Shares Fall
Shares of United Airlines Holdings (UAL - Free Report) declined 3.4% at the close of business on Sep 9, following its reduced guidance for third-quarter 2020 capacity and passenger revenues. (Read More)
Equinor to Offload Stake in US Offshore Wind Projects to BP
Equinor ASA (EQNR - Free Report) recently agreed to divest 50% non-operated stake in Empire Wind and Beacon Wind assets located on the east coast of the United States to BP plc (BP - Free Report) . (Read More)
These Stocks Are Poised to Soar Past the Pandemic
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