By Alex Eule
| Wednesday, September 9
Risk
On. The tech crash was short-lived. After a
three-day 10% decline, the tech-heavy Nasdaq
Composite rallied 2.7% today for its best session
since late April. Tesla and Zoom
Video Communications each jumped 11%, while Peloton
Interactive was up 7%. Apple and Microsoft were each up over 4%.
Investors
evidently saw the quickest
correction on record as a buying opportunity. And that's
probably a healthy sign for the market's continued run, according
to Chris Zaccarelli, chief
investment officer for Independent
Advisor Alliance. "As long as the
buy-the-dips mentality remains foremost in investors’ minds -- and it
will unless they are severely punished for it -- then the bull market is
likely to continue," he said today.
Burt White, chief
investment officer of LPL
Financial, sees little logic in the
correction or the subsequent rally: “Much like there was no real reason
for the drop the past three days, there was no main driver for today’s huge
rally, other than stocks were quite oversold. As the election nears, we
could see this volatility continue.”
The Nasdaq's
best day in over four months came as a major Covid-19 vaccine trial was
halted and as U.S. lawmakers' efforts at another stimulus package ground
to a halt. A few months ago, stimulus and vaccines were all investors cared
about. No longer. It's hard to know what the market will worry about
next, but the Federal Reserve's meeting
next week could still register. The success of the country's back-to-school
push could also be an increasingly important factor for the market in the
weeks to come.
In the
meantime, the Dow Jones Industrial
Average rose 440 points today, led by Salesforce.com, Microsoft,
and Home Depot.
 |
DJIA: +1.60% to 27,940.47
S&P 500: +2.01% to 3,398.96 Nasdaq: +2.71% to 11,141.56
The Hot
Stock: Qorvo +7.5%
The Biggest Loser: Tiffany & Co. -6.4%
Best Sector:
Technology +3.3%
Worst Sector: Energy +0.7%  |
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