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S&P 500 Jumps as Investors Swoop In on Tech After Rout

Stock MarketsOct 05, 2021 04:15PM ET
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© Reuters.

By Yasin Ebrahim

Investing.com – The S&P 500 rebounded Tuesday as investors took advantage of Monday's selloff to load up on tech stocks. 

The S&P 500 gained 1%, the Dow Jones Industrial Average added 0.9% or 311 points, the Nasdaq was up 1.3%.

Facebook (NASDAQ:FB) climbed 2%, paring some of its 5% loss from Monday, after resuming service following a six-hour outage.

Sentiment on social media giant continues to be challenged amid ongoing concerns about potential regulatory as whistle blower Frances Haugen, a former Facebook product manager, testified before Congress that the social media giant's products "harm children, stoke division, and weaken our democracy."

The dip-buying in tech comes even as Treasury yields continued to climb, with the 10-year trending above 1.5%.

Investors also took advantage of the recent dip in other big tech stocks, with Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN), and Alphabet (NASDAQ:GOOGL) more than 1% higher.

The day of gains tech didn't spark the usual value to growth rotation as cyclical stocks were also up strong, with financials including banks leading the way.

Goldman Sachs  (NYSE:GS), Charles Schwab (NYSE:SCHW), Bank of New York Mellon (NYSE:BK) were up more than 2%.

Cyclical stocks were also boosted by data showing an unexpected rise in U.S. services activity in August.  

"We had expected that we were going to see the index continue to glide lower this month, but the service sector is showing impressive strength and resilience," Jefferies (NYSE:JEF) said in a note.

Energy lagged the broader-market move higher even as oil prices continued climb after major oil producers decided against lifting production.

"Many had hoped OPEC+ would increase output and help alleviate the global supply shortage. The group, however, opted to stick to its original outline of gradually releasing 400,000 additional barrels of oil per month despite calls from world leaders, including the White House, to bring more crude onto the market," Stifel said in a note.

Cryptocurrency-related stocks including Marathon Digital (NASDAQ:MARA), Coinbase Global (NASDAQ:COIN), and Riot Blockchain (NASDAQ:RIOT) were pushed higher by a surge in bitcoin as the popular crypto topped $50,000.

On the earnings front, PepsiCo (NASDAQ:PEP) ended up nearly 1% after the beverage and snack reported quarterly results that beat on the top and bottom lines, underpinned by strong performance in its North American beverage division.

In other news, Johnson & Johnson (NYSE:JNJ) requested emergency authorization for its Covid booster from the Federal Drug Administration.

In Washington, the impasse over the debt ceiling continued, with Senate Majority Leader Chuck Schumer reiterating that Democrats aren't willing go it alone to raise the debt limit by the Oct. 18 deadline.

S&P 500 Jumps as Investors Swoop In on Tech After Rout
 

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Comments (19)
William Bailey
William Bailey Oct 06, 2021 7:14AM ET
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Haw haw haw …. All gains lost in futures
William Bailey
William Bailey Oct 06, 2021 7:14AM ET
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Haw haw haw ….. all the gains lost
William Bailey
William Bailey Oct 06, 2021 7:13AM ET
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Haw haw haw ….. all the gains lost
Rodney Dangerfield
Rodney Dangerfield Oct 06, 2021 2:23AM ET
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yeah our lawmakers that work together get paid the same take money from the same people have the same friends eat at the same places vacation same places have the same healthcare retirement yeah these people don't like each other....lol
Rodney Dangerfield
Rodney Dangerfield Oct 06, 2021 2:22AM ET
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don't worry everyone we got Republicans and Democrats in the bag the arguing is a sideshow to confuse the small brains don't worry these people who work at the same place have the same friends eat at the same places hang out at the same places paid the same the same healthcare
William Bailey
William Bailey Oct 06, 2021 1:18AM ET
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Aww shucks … most the gain from the Fed 80b injection wore off in hours and gains modest now after futures and end of day dive!!!
Umar Muhammad
Umar Muhammad Oct 05, 2021 6:32PM ET
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New Jazenevd
New Jazenevd Oct 05, 2021 6:30PM ET
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Every dip will be met by strong buying. Keeping cash is silly, when inflation reigns.
William Bailey
William Bailey Oct 05, 2021 6:30PM ET
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Nah, Fed out of 80b this month … already spent. Assets will deflate like the Hindenberg … then no stim .. then deflation like never before
Mitchel Pioneer
Mitchel Pioneer Oct 05, 2021 6:25PM ET
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The US Ponzi Scheme is a criminally manipulated JOKE, plain and simple.
William Bailey
William Bailey Oct 05, 2021 6:25PM ET
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Fed direct injection of most of the QE for the entire month … rout should start tonight
 
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