Nasdaq Rebounds

harryji (78)adminYour Wizardin Harry Potter Library • 8 months ago

The Nasdaq Composite surged over 1% on Tuesday, marking its third consecutive day of gains as investors returned to tech stocks after a challenging August for the market.

The tech-heavy index closed with a 1.74% gain at 13,943.76, while the S&P 500 climbed 1.45% to reach 4,497.63 – its strongest performance since June 2.
The Dow Jones Industrial Average also rose by 0.85%, adding 292.69 points to finish at 34,852.67.

Notably, chipmaker Nvidia led the upward movement among tech stocks with a more than 4% gain, while shares of Meta Platforms, Tesla, Apple, and Microsoft all experienced positive movements.

Falling bond yields following the release of new U.S. economic data appeared to boost the tech sector.

In addition to the tech sector's rebound, AT&T saw a 3.9% increase after Citi upgraded the stock, and Best Buy's shares rose by 3.8% after the retailer reported earnings that surpassed expectations.

The 2-year Treasury yield dropped significantly, up to 16 basis points, as consumer sentiment data fell short of expectations. The latest job openings and labor turnover survey also indicated a decline in open listings in July, suggesting a cooling economy.

HSBC's chief multi-asset strategist, Max Kettner, noted that the recent market selloff in August had brought investor sentiment down to more reasonable levels, potentially offering a tactical entry point into risk assets, particularly U.S. equities.

Furthermore, a court decision that could pave the way for a bitcoin ETF contributed to increased risk-taking on Tuesday, leading to a nearly 15% surge in the value of the cryptocurrency exchange Coinbase.

These positive movements followed a two-day advance for the S&P 500, which rose 0.6% on the previous day, along with a 0.8% increase for the Nasdaq and a 200-point gain for the Dow.

As August comes to an end, the Dow is on track to finish 1.9% lower, while the S&P 500 and Nasdaq are expected to show losses of 1.9% and 2.8%, respectively.

Summary for Quick View

The Nasdaq Composite gained over 1% for the third consecutive day as tech stocks rebounded after a challenging August.

Major indices, including the S&P 500 and the Dow Jones Industrial Average, also posted gains.
Rising tech stocks, led by chipmaker Nvidia, were boosted by falling bond yields due to new U.S. economic data.
Other positive factors included AT&T's stock upgrade and strong earnings from Best Buy.
The 2-year Treasury yield dropped significantly, indicating potential economic cooling.
A court decision supporting a bitcoin ETF contributed to a surge in cryptocurrency exchange Coinbase.

Despite recent gains, the Dow, S&P 500, and Nasdaq are set to end August with losses. HSBC's strategist noted that the August selloff has brought sentiment to more reasonable levels, potentially making it a tactical entry point into risk assets.

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