Sept. 9 (UPI) — Tech stocks rallied Wednesday, pushing the Nasdaq composite average to its best day since April.
The Dow Jones Industrial Average gained 439.58 points, or 1.6%, while the S&P 500 rose 2.01% and the Nasdaq ended the day up 2.71% for its largest single-day gain since April 29.
Tesla stock gained 10.92% after falling 21% Tuesday, and tech stocks such as Apple, Microsoft, Amazon, Alphabet and Facebook also rebounded after all six lost $1 trillion in market value over the past three days.
Microsoft stock closed up 4.26%, Apple rose 3.99%, Amazon gained 3.77%, Alphabet increased 1.55% and Facebook climbed 0.94%.
James Ragan, director of Wealth Management at D.A. Davidson, told MarketWatch that tech stocks are leading the market recovery and evidence of a rotation into poor performing stocks has dissipated.
“We could say that today, any rotation has stalled out,” Ragan said. “Over the past few months, any time we get a little more strong performance value groups, it doesn’t really last.”
Overall, markets have recorded their worst three-day stretch in months as the S&P 500 has lost 7% and the Nasdaq Composite dropped 10% after both had set record highs the previous week.
The S&P 500’s tech sector rallied 3.4% Wednesday, but remained down 8.4% for the week.
“We were due for a bounce,” Christian Fromhertz, CEO of Tribecca Trade Group told CNBC. “We had three days of decent selling and these things tend to get a little overextended.”
