S&P Rallies, Recovering Losses

13 August 2020

    As shares of major tech companies recovered Wednesday, S&P 500 had gained 1.4% closing at 3,380.35 - its largest one-day jump since July 6th.

     

    Yesterday’s big tech stock losers - Microsoft and Apple have gained over 2.8%, Google - 1.8%, and Facebook and Netflix - 1.5%.

     

    “There’s a big debate happening in the market right now,” says Yousef Abbasi, global market strategist at StoneX. “Does the tech outperformance continue? Or does hope around a vaccine, a better-than-expected Q2 earnings season and the hope the strong economic data continues to hold up start to justify the idea that some froth should probably come out of tech?”

     

    Indeed, although sentiment has been additionally lifted by Trump’s statement Tuesday that the US government will purchase 100 million doses of Moderna’s experimental coronavirus vaccine, uncertainty with regard to FAANG stocks and the US coronavirus fiscal stimulus package isn't going anywhere. The continuous trend of struggling got a lot of investors selling, anxious to lock-in recent gains.


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