By Yasin Ebrahim
Investing.com – The S&P 500 eased off lows Thursday as tech cut some losses after a move into oversold territory triggered a wave of buying that some on Wall Street believe could fuel another rally.
The S&P 500 was up 0.46%, the Dow Jones Industrial Average rose 0.54%, or 173 points, the Nasdaq Composite was up 0.06%, but had been down more than 1% intraday.
"We believe the action today may be pushing stocks into moderately oversold territory on a short-term basis once again," Janney Montgomery Scott said. "[W]e are on guard for some choppy action ahead with the likelihood of a trading rally materializing soon."
The intraday bounce in tech from session lows comes even as leaders of megacap tech including Google-parent Alphabet (NASDAQ:GOOGL), Facebook (NASDAQ:FB), Microsoft (NASDAQ:MSFT) and Twitter are under scrutiny on Capitol Hill.
Palantir Technologies (NYSE:PLTR), meanwhile, was up nearly more than 2% after Ark Investor Cathie Wood took a position in the stock following a more than 5% slump a day earlier.
U.S. bond yields, meanwhile, also turned positive as a weaker-than-expected seven-year Treasury auction continued to suggest investors are betting on rates going higher.
In industrials, Bloomberg reported that Boeing would resume deliveries of its 787 Dreamliners as soon as Friday following a five-month stall as the aircraft maker sought to repair structural flaws of the plane.
Boeing (NYSE:BA) was up 3%, while other aviation stocks including airlines like United Airlines Holdings (NASDAQ:UAL), Delta Air Lines Inc (NYSE:DAL) and American Airlines (NASDAQ:AAL) clawed back some recent losses.
Energy stocks, meanwhile, were led lower by slump in oil prices on fears the lockdown in Europe could dent the supply-demand rebalancing.
The broader economy, meanwhile, continues to expand as jobless claims fell more than expected and fourth-quarter GDP beat economists' estimates.
President Joe Biden talked up the progress on the economy after doubling the vaccine target to 200 million vaccines within the first 100 days of presidency in his first press conference. “A number of economists are projecting GDP to increase by 6% this year …." Biden said. The latest jobs report showed the unemployment claims fell below pre-pandemic highs, he added.
In other news, GameStop (NYSE:GME) jumped 45%, clawing back some of its losses following its post-earnings slump earlier this week.