Oil prices edge up, a day after their biggest fall in months
U.S. stocks rebounded Wednesday after a three-session selloff in big technology stocks pulled the Nasdaq Composite Index into correction territory.
The tech-laden index rose 3.2%, after suffering its worst three-day drop since March. The Dow Jones Industrial Average rose 560 points, or 2%, and the S&P 500 gained 2.5%.
The major tech companies that drove the selloff were leading the rebound. Shares of Apple rose 5.2%, Microsoft gained 5.2% and Amazon climbed 4.6%. Tesla rose 7.2%, after dropping 21% on Tuesday.
“Things calmed down a lot,” said Fawad Razaqzada, an analyst at ThinkMarkets. “We got the correction we should have had a few weeks ago. Now investors are asking whether they should buy the latest dip.”
Indeed, the selloff was just an example of the market’s usual give and take, said Sean Sun, a portfolio manager at Thornburg Investment Management in Sante Fe, N.M. The top tech stocks are still very profitable, and combined with the Fed’s determination to keep rates low, stocks still look like a buy, he said.
“The selloff wasn’t a turning point,” he said. “Investors are coming back to the buffet.”