Tech Stocks Help Lead Significant Rebound On Wall Street

wallstreet aug21 09sep20 lt

Stocks showed a strong move to the upside during trading on Wednesday, regaining ground following the sell-off seen over the three previous sessions. The major averages all climbed firmly into positive territory but remain well off their recent highs.

The major averages pull back off their best levels going into the close but held on to strong gains. The Dow jumped 439.58 points or 1.6 percent to 27,940.47, the Nasdaq soared 293.87 points or 2.7 percent to 11,141.56 and the S&P 500 surged up 67.12 points or 2 percent to 3,398.96.

The rebound on Wall Street came as some traders looked to pick up stocks at relatively reduced levels following the recent sell-off.

Technology stocks showed a substantial rebound on the day after leading the markets lower over the past few sessions.

Tech giants Microsoft (MSFT), Apple (AAPL), and Amazon (AMZN) posted standout gains, partly offsetting their recent losses.

With Microsoft helping to lead the way higher, software stocks showed a notable move to the upside on the day. Reflecting the strength in the sector, the Dow Jones U.S. Software Index surged up by 3.7 percent.

Considerable strength was also visible among semiconductor stocks, as reflected by the 2.9 percent spike by the Philadelphia Semiconductor Index.

Outside of the tech sector, gold stocks moved sharply higher over the course of the session, driving the NYSE Arca Gold Bugs Index up by 4.8 percent.

The rally by gold stocks came amid an increase by the price of the precious metal, with gold for December delivery climbing $11.70 to $1,954.90 an ounce.

Chemical, housing and retail stocks also saw significant strength on the day, reflecting broad based buying interest on Wall Street.

Meanwhile, airline stocks were among the few groups to buck the uptrend, resulting in a 2 percent slump by the NYSE Arca Airline Index.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Wednesday. Japan's Nikkei 225 Index slid by 1 percent, while China's Shanghai Composite Index plummeted by 1.9 percent.

Meanwhile, the major European markets showed strong moves to the upside on the day. While the German DAX Index surged up by 2.1 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index both jumped by 1.4 percent.

In the bond market, treasuries moved modestly lower over the course of the trading session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, edged up by 1.9 basis points to 0.703 percent.

Looking Ahead

Trading on Thursday may be impacted by reaction to Labor Department reports on weekly jobless claims and producer price inflation.

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