Nasdaq records largest single-day gain since April as tech stocks rebound

A sign for Wall Street hangs outside at the New York Stock Exchange on April 20. Stocks were down Friday morning ahead of President Donald Trump's news conference on China. Photo by John Angelillo/UPI

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.”

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