Tech stocks drove the recent three-day sell-off, but now those same stocks have helped drive markets back up.
MANHATTAN (CN) — Big Tech tooketh away, and then Big Tech gaveth back.
After three days of steep losses due to plummeting technology company stocks, markets rebounded sharply on Wednesday led by gains among many of those same companies.
The Dow Jones Industrial Average — which had fallen 1,600 points since Thursday — made sizeable gains by the closing bell, finishing up 439 points, a 1.6% increase.
Among the Nasdaq and S&P 500, the gains were similarly impressive, given the rout both indices have faced recently. The Nasdaq on Wednesday wiped out nearly 300 points from the 1,209-point loss it took over the last three trading days, while the S&P 500 was able to recoup 67 of the 250 points it lost since last Thursday.
Many of the leaders in technology drove the rebound. Shares of Apple gained 3.9%, while Amazon followed closely behind with a 3.7% increase. Google parent company Alphabet gained 1.5%. Twitter and Facebook also regained some of their recent losses, increasing 3.5% and nearly 1%, respectively.
Tesla wasn’t able to recoup all of its losses from Tuesday, when it plummeted 21%. It was able to climb about halfway out of the hole, however, with a 10.9% increase.
Some speculate the rally is the natural response to such depressed stock prices. David Madden, a market analyst at CMC Markets, wrote in a note that stocks in Europe and the United States were higher on Wednesday “as bargain hunters have swooped in to take advantage of the relatively low prices in the wake of yesterday’s heavy sell-off.”
Earlier in the day, markets in Europe also rebounded, with indices in Germany and France gaining 2% and 1.4%, respectively. The pan-European Stoxx 600 rose 1.6% for the day.
Markets in Asia were flipped, with losses across the board. Australia’s ASX 200 led Asian market losses with a 2% drop.
The week has been slow for economic indicators, though many economic analysts remain focused on Congress’ actions to pass a fourth stimulus bill and the progression of the coronavirus.
According to data compiled by Johns Hopkins University, more than 27 million have contracted Covid-19 worldwide, while roughly 898,000 have died. In the United States alone, about 6.3 million have been confirmed infected while almost 190,000 have died.