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Dow Racks Up Gains as Tech Bulls Fight Back

Published 09/09/2020, 18:04
Updated 09/09/2020, 18:12
© Reuters.
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By Yasin Ebrahim

Investing.com – The Nasdaq rebounded on Wednesday, led by Apple (NASDAQ:AAPL) as bargain-hunting investors swooped in to snap up beaten-down tech stalwarts.

The Dow Jones Industrial Average rose 2.31%, or 637 points. The S&P 500 was up 2.69%, while the Nasdaq Composite added 3.31% after falling 10% in just under a week, the fastest correction on record.

The sea of red that has washed over tech for the three-straight trading sessions turned green, with Apple rising more than 5% as investors resumed their bullish bets on the tech giant ahead of its new iPhone launch widely expected later this year.

Facebook (NASDAQ:FB) Alphabet (NASDAQ:GOOGL), Amazon.com (NASDAQ:AMZN), and Microsoft (NASDAQ:MSFT) were also up, with the latter rising more than 5%.

The tech-heavy Nasdaq was also lifted by a 7% surge in Tesla (NASDAQ:TSLA), a day after the electric automaker slumped 20% after it failed to make the cut to be included in the S&P 500 despite generating four consecutive quarters of growth.

But Slack Technologies (NYSE:WORK) sidestepped the rally in tech, plunging 15%, as its better-than-expected second-quarter results were offset by signs of slowing growth in billings.

"Slack's billings miss … will be a shock to the bulls anticipating a clean beat," Wedbush said. "It appears elevated churn and overall macro softness impacted the company's results."

Philadelphia Semiconductor Index also contributed to the rebound, rising 3%, led by Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD) and Qualcomm (NASDAQ:QCOM).

Elsewhere on the earnings front, Lululemon Athletica (NASDAQ:LULU) fell 9% as investors overlooked the company's better-than-expected quarterly results.

Airlines also struggled, paced by a nearly 4% decline in United Airlines Holdings Inc (NASDAQ:UAL) after the carrier trimmed its third-quarter guidance on capacity and passenger revenue.

American Airlines (NASDAQ:AAL) fell nearly 5%, Delta Air Lines (NYSE:DAL) was down 2% and Southwest Airlines (NYSE:LUV) slipped nearly 4%.

On the economic front, U.S. job openings rose 10%, or 5.8 million in July, though, that was down from almost 7 million seen in June.

 

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