Wall St opens higher after three-day selloff as tech stocks stabilise

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"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", Burt White, chief investment officer for LPL Financial, said in an email Wednesday.

The S&P 500 fell 95.12 points, or 2.8%, to 3,331.84.

Additionally, Zoom Video Communications, the popular video chat software tapped by several companies and institutions to stream courses and business meetings during the pandemic, saw its share price fall by 4.43%.

Apple Inc, the biggest United States company by market capitalisation, rose 1.8%, while Tesla Inc jumped 6.1%.

The Kospi in Seoul advanced 0.9% to 2,396.48 and Sydney's ASX-S&P 500 gained 0.5% to 5,908.50.

"To the extent that "buy the dip" mentality persists, this market may possess a somewhat more stubborn bullish streak", said Mizuho Bank.

"However, with some volatility having returned to markets it's too soon to say whether the rout is over, or whether last night's recovery is simply a pause", the added.

Other "stay-at-home" winners such as Amazon.com Inc and Facebook Inc also climbed, a day after their declines pushed the tech-heavy Nasdaq into correction territory as it ended 10 per cent below its September 2 closing high.

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Tesla Inc's shares jumped 8.8 per cent after shedding about a fifth of their value in the previous session following its surprise exclusion from the S&P 500.

The S&P 500 posted no new 52-week highs and 2 new lows; the NASDAQ Composite recorded 28 new highs and 45 new lows.

The major futures indexes are suggesting a Dow decline of 0.4 percent.

That retraced a little bit to sit at 0.6951 per cent in Asia. "The market structure is dislocated at the moment. with stimulus and (markets at) all time highs - there's no reference point".

However, hopes for an improving economic outlook, following a Bloomberg News report that European Central Bank economic projections would be broadly steady since June, had the euro on the front foot in Asia at US$1.1817.

Tesla Inc. shares rebounded 10.92 percent after suffering their biggest one-day percentage drop in the prior session, while Apple Inc., Microsoft Corp. and Amazon.com Inc. - the top three US public companies by market capitalization - each rose by at least 3 percent.

US equity futures are mostly lower heading into the Wednesday trading session.

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