By Yasin Ebrahim
Investing.com – The Nasdaq snapped a three-week losing streak on Friday, as tech rebounded with a strong showing from Apple ahead of its iPhone 5G launch widely expected to be just weeks away.
The Nasdaq Composite gained 2.26%, the Dow Jones Industrial Average was up 1.34%, or 155 points and the S&P 500 added 1.65%.
Tech continued to ride the wave of bargain-seeking investors scooping up beaten-down blue chips in the sector, with Apple (NASDAQ:AAPL), in particular, seeing strong gains, up 3%. The rise in Apple comes as Morgan Stanley (NYSE:MS) said the stock's recent weakness provides a "compelling entry point." Recent checks suggest that Apple is taking market share in Europe and China ahead of its iPhone 5G launch, the bank added.
Microsoft (NASDAQ:MSFT) Alphabet (NASDAQ:GOOGL) Amazon.com (NASDAQ:AMZN) and Facebook (NASDAQ:FB), which together make up a quarter weighting of the S&P 500, ended 1% higher.
Industrials were not far behind thanks to gains in United Parcel Service (NYSE:UPS), Boeing (NYSE:BA), and United Airlines Holdings (NASDAQ:UAL), with the latter two rising on hopes the aviation industry could receive federal funding if the Democrats' proposed $2.4 trillion bill, which is expected to be voted on next week, is passed.
As well as aid for airlines, the bill is expected to include funding for direct payments to households and small business loans. The move on a new fiscal stimulus comes as the Democrats seek to restart stimulus talks with the White House after negotiations broke down last month.
An 11% rally in Novavax (NASDAQ:NVAX), meanwhile, pushed up healthcare stocks after the drugmaker said it had started a late-stage trial of its Covid-19 vaccine candidate in the U.K.
On the earnings front, Costco (NASDAQ:COST) reported quarterly earnings and revenue that topped estimates. The shares fell 2%, but some Wall Street analysts said the weakness was a buying opportunity.
"We'd take advantage of the weakness as we see a strong case for outperformance driven by continued market share gains and a special dividend, which could potentially come next year. However, EPS upside seems less likely from here as premium wages could continue going forward," Oppenheimer said.
Energy proved an exception to the broader market rally, ending the day flat as oil prices fell for the third week in four amid worries about demand when many are concerned about further coronavirus lockdowns.