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Major U.S. benchmark indexes staged a solid intraday rebound on Monday, driven by a rally in tech stocks as investors shed off fears arising from the strict lockdown in China due to surging COVID-19 cases. All the major indexes ended in positive territory.
Also, Twitter’s board agreed to sell the microblogging site to Tesla boss Elon Musk, sending tech stocks on a rally.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) climbed 0.7% or 238.06 points to finish at 34,049.46 points to record its biggest intraday turnaround in more than two months. This blue-chip index at one point of the day lost as much as 488 points or was down 1.44%. The last time Dow made such a solid comeback after being down so much during intraday to finish in positive territory was on Feb 24.
The S&P 500 gained 0.6% or 24.34 points to end at 4,296.12 points, recording its biggest gain in almost a week and snapping its three-day losing streak. Tech and communications services stocks were the best performers.
The Technology Select Sector SPDR (XLK) and the Communication Services Select Sector SPDR (XLC) gained 1.5% and 1.4%, respectively. However, energy stocks were big losers. The Energy Select Sector SPDR (XLE) declined 3.3%. Seven of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq rose 1.3% or 165.56 points to close at 13,004.85 points to snap its three-day losing streak.
The fear-gauge CBOE Volatility Index (VIX) was down 4.22% to 27.02. Decliners outnumbered advancers on the NYSE by a 1.19-to-1 ratio. On Nasdaq, a 1.21-to-1 ratio favored advancing issues. A total of 12.8 billion shares were traded on Monday, higher than the last 20-session average of 12.7 billion.
Tech Stocks Drive Wall Street Rally
Investors have been concerned about risks from sharp rate hikes in the coming days that took a toll on stocks on Friday, with the Dow declining nearly 1,000 points. However, they started the new week shedding fears of rising rates. Also, they brushed aside fears arising from fresh lockdowns in China owing to the surge in COVID-19 cases. This sent yields, which move opposite to price, lower on Monday.
The 10-year Treasury yield slumped 8 basis points to 2.83% after reaching its highest level last week since December 2018. As a result, tech stocks rebounded later in the day. The tech rally further helped the broader market. Shares of Microsoft Corporation (MSFT - Free Report) and Alphabet, Inc. (GOOGL - Free Report) gained 2.4% and 2.9%, respectively. Google has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Musk to Buy Twitter
Another big winner on Monday was Twitter, Inc. after its board agreed to sell the company to Tesla, Inc. (TSLA - Free Report) founder Elon Musk in a $44 billion deal.
Although the earnings season hasn’t started on a great note, investors are still hopeful about big companies delivering impressive quarterly results. This is going to be a busy week on the earnings front, with major tech companies scheduled to report their quarterly results. About 160 companies in the S&P 500 are likely to report their quarterly earnings this week.
Also, it’s going to be a busy week on the economic front. No economic data was released on Monday.
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Stock Market News for Apr 26, 2022
Major U.S. benchmark indexes staged a solid intraday rebound on Monday, driven by a rally in tech stocks as investors shed off fears arising from the strict lockdown in China due to surging COVID-19 cases. All the major indexes ended in positive territory.
Also, Twitter’s board agreed to sell the microblogging site to Tesla boss Elon Musk, sending tech stocks on a rally.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) climbed 0.7% or 238.06 points to finish at 34,049.46 points to record its biggest intraday turnaround in more than two months. This blue-chip index at one point of the day lost as much as 488 points or was down 1.44%. The last time Dow made such a solid comeback after being down so much during intraday to finish in positive territory was on Feb 24.
The S&P 500 gained 0.6% or 24.34 points to end at 4,296.12 points, recording its biggest gain in almost a week and snapping its three-day losing streak. Tech and communications services stocks were the best performers.
The Technology Select Sector SPDR (XLK) and the Communication Services Select Sector SPDR (XLC) gained 1.5% and 1.4%, respectively. However, energy stocks were big losers. The Energy Select Sector SPDR (XLE) declined 3.3%. Seven of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq rose 1.3% or 165.56 points to close at 13,004.85 points to snap its three-day losing streak.
The fear-gauge CBOE Volatility Index (VIX) was down 4.22% to 27.02. Decliners outnumbered advancers on the NYSE by a 1.19-to-1 ratio. On Nasdaq, a 1.21-to-1 ratio favored advancing issues. A total of 12.8 billion shares were traded on Monday, higher than the last 20-session average of 12.7 billion.
Tech Stocks Drive Wall Street Rally
Investors have been concerned about risks from sharp rate hikes in the coming days that took a toll on stocks on Friday, with the Dow declining nearly 1,000 points. However, they started the new week shedding fears of rising rates. Also, they brushed aside fears arising from fresh lockdowns in China owing to the surge in COVID-19 cases. This sent yields, which move opposite to price, lower on Monday.
The 10-year Treasury yield slumped 8 basis points to 2.83% after reaching its highest level last week since December 2018. As a result, tech stocks rebounded later in the day. The tech rally further helped the broader market. Shares of Microsoft Corporation (MSFT - Free Report) and Alphabet, Inc. (GOOGL - Free Report) gained 2.4% and 2.9%, respectively. Google has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Musk to Buy Twitter
Another big winner on Monday was Twitter, Inc. after its board agreed to sell the company to Tesla, Inc. (TSLA - Free Report) founder Elon Musk in a $44 billion deal.
Although the earnings season hasn’t started on a great note, investors are still hopeful about big companies delivering impressive quarterly results. This is going to be a busy week on the earnings front, with major tech companies scheduled to report their quarterly results. About 160 companies in the S&P 500 are likely to report their quarterly earnings this week.
Also, it’s going to be a busy week on the economic front. No economic data was released on Monday.