sunny.png
Wednesday March 3rd, 2021 6:43PM

Stocks bounce back on Wall Street as tech bloodletting halts

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — Wall Street snapped back Wednesday from its recent tumble, as the bloodletting for big technology stocks came to at least a temporary halt. Apple, Amazon, Zoom Video Communications and other tech companies that suddenly lost their momentum late last week on worries their stocks soared too high all regained some ground. They helped lift the S&P 500 index 2%, its best day in three months. The Nasdaq, which includes many tech stocks, rose 2.7%. It’s coming off a 10% drop over the previous three days. Treasury yields ticked higher, and crude oil prices clawed back some of their slide from the prior day.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story appears below.

Wall Street is snapping back to life on Wednesday, as the recent bloodletting for big technology stocks comes to at least a temporary halt.

Apple, Amazon, Zoom Video Communications and other tech companies that suddenly lost their momentum late last week on worries their stocks soared too high all regained some ground. They helped lift the S&P 500 by 2.7% in afternoon trading, and the index is on pace for its best day since May.

The Dow Jones Industrial Average was up 688 points, or 2.5%, at 28,189 as of 3:09 p.m. Eastern time. The Nasdaq composite, which includes many tech stocks, was up 3.2%. It’s coming off a 10% drop over the previous three days.

Tesla, which has made some of the wildest moves in recent months, rose 9.7%. A day earlier, it plunged 21.1% for its worst day since its shares began trading a decade ago. In August, it surged 74.1%.

Selling over the last week in the market has focused on such tech superstars, which had earlier zoomed through the pandemic amid expectations that they would benefit from the new stay-at-home economy. Blockbuster spring profit reports from many of them emboldened investors, who bid their stock prices up to levels that critics called too expensive, even after accounting for their powerful growth.

A flurry of buying of stock options for big tech stocks may have helped further goose the gains, analysts say.

This month the S&P 500 and Nasdaq pushed repeatedly to record highs, even though the economy is struggling under the weight of the coronavirus pandemic. But the fever broke on Thursday, with the S&P 500 dropping 7% in three days, its longest losing streak in nearly three months.

“The fact is that there was a broad consensus that it was overbought, and the rally was overextended and due for some sort of pullback,” said Quincy Krosby, chief market strategist at Prudential Financial.

Still to be determined is whether that sell-off was just a blowing-off of some steam for tech stocks that had gotten overheated — or whether it was the beginning of a more widespread downturn.

It doesn't help that September is traditionally a weak month for stocks, Krosby said. "Is this the pause or, are we due for more selling?”

Other sectors didn’t get as expensive as technology during the recent run-up. Banks and other financial stocks in the S&P 500 are still down nearly 19% for 2020 so far, for example. But challenges continue to loom over the entire market, including uncertainty about how the pandemic will progress.

Trade issues remain a worry for markets, and the souring U.S.-China relationship gets the brightest spotlight. But that’s not the only potential hot spot.

Tiffany lost 6.1% after European luxury giant LVMH ended its $14.5 billion takeover deal for the jewelry retailer. LVMH said it made the move in part because the French government requested a delay due to the threat of proposed U.S. tariffs on French products.

Investors are also waiting for Congress to deliver more aid to the economy after unemployment benefits and other stimulus that it approved earlier ran out. Investors say it’s critical that the economy get such stimulus, but partisan disagreements have Congress at an apparent impasse.

A Senate vote this week on a trimmed-down relief package proposed by Republicans has only a slim chance of passage as Democrats insist on more sweeping aid.

The stock market’s rally started in late March following massive amounts of aid from the Federal Reserve and Congress. It accelerated as the economy showed signs of improvement. Corporate profit reports for the spring that weren’t as disastrous as expected also helped lift the market.

Late Tuesday, Slack Technologies also reported what analysts called a good quarter, with revenue topping expectations. But the company also reported billings that were weaker than expected, and its stock tumbled 15%.

Hopes for a potential COVID-19 vaccine also helped the S&P 500 erase all of its nearly 34% loss from earlier in the pandemic. U.S-listed shares of AstraZeneca slipped 1.4% Wednesday, though, after it put late-stage studies of its vaccine candidate on temporary hold while it investigates whether a recipient’s illness is a side effect of the shot.

Treasury yields ticked higher, with the 10-year yield rising to 0.69% from 0.68% late Tuesday.

Crude oil clawed back some of its slide from the prior day. Benchmark U.S. crude rose $1.29 to settle at $38.05 per barrel. Brent crude, the international standard, added $1.01 to $40.79 per barrel.

European stocks were higher, with France’s CAC 40 up 1.4% and Germany’s DAX returning 2.1%. The FTSE 100 in London added 1.4%.

Asian markets were weaker. Japan’s Nikkei 225 fell 1%, South Korea’s Kospi lost 1.1% and the Hang Seng in Hong Kong dipped 0.6%. Stocks in Shanghai dropped 1.9%.

___

AP Business Writer Elaine Kurtenbach contributed.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Health Care, AP Business - Utilities
© Copyright 2021 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Biden aims to rebuild 'blue wall' in appeal to autoworkers
Joe Biden is making a direct appeal to blue-collar workers who might have voted Republican four years ago but now regret it
2:35PM ( 16 minutes ago )
Trump plans for Nevada rallies conflict with virus limits
President Donald Trump’s plans to hold weekend rallies in Las Vegas and Reno are in jeopardy after local officials warned they would violate Nevada’s ban on gatherings of more than 50 people because of the coronavirus
2:34PM ( 18 minutes ago )
'Unprecedented' Pacific Northwest fires approach Portland
Firefighters in the Pacific Northwest are scrambling to keep up with dozens of catastrophic fires in the region that have forced people to flee their homes and trapped firefighters and civilians
2:32PM ( 20 minutes ago )
Associated Press (AP)
The Latest: Williams pushes US Open quarterfinal to 3rd set
Serena Williams has pushed her U.S. Open quarterfinal against Tsvetana Pironkova to a third set
1:51PM ( 1 hour ago )
UN protection back for threatened Nobel-winning Congo doctor
For weeks, a Nobel Peace Prize-winning Congolese doctor has faced death threats, leading alarmed supporters to urge the United Nations to reinstate the peacekeepers who were withdrawn from his hospital months ago
1:46PM ( 1 hour ago )
Biden visits Michigan amid effort to rebuild 'blue wall'
Joe Biden is hoping to win back Michigan, Pennsylvania and Wisconsin this fall
1:42PM ( 1 hour ago )
AP Business
Stocks perk up on Wall Street as tech bloodletting halts
Wall Street is steadying itself Wednesday following a three-day losing streak, the first in nearly three months
12:34PM ( 2 hours ago )
Trade deal at risk as EU says UK must honor Brexit agreement
Prospects of a trade deal between Britain and the European Union look to be dimming
11:03AM ( 3 hours ago )
Strong start for stocks on Wall Street a day after sell-off
Stocks are off to good start on Wall Street, a day after more steep drops in big technology companies pulled indexes sharply lower
9:42AM ( 5 hours ago )
AP Business - Economy
Tech’s sudden sell-off continues; Nasdaq sinks 10% in 3 days
Big technology stocks tumbled again on Tuesday, continuing the Icarus-like flight path for companies that just a week ago were the high-flyers carrying Wall Street to record heights
5:36PM ( 21 hours ago )
Technology stocks keep stumbling; Nasdaq down 10% in 3 days
Big tech stocks slumped again on Wall Street, pulling the Nasdaq down 10% over the past three trading days
4:08PM ( 22 hours ago )
Technology stocks keep stumbling; Nasdaq down 9% in 3 days
Big tech stocks are continuing their Icarus-like flight path, and more sharp declines for them are dragging Wall Street toward a third straight loss on Tuesday
3:19PM ( 23 hours ago )
AP Business - Financial Markets
Zimbabwe government announces mining ban in national parks
Zimbabwe’s government says it has banned mining in its national parks, but an environmental group that had taken court action to stop the development of a coal mine in an elephant-rich park said on Wednesday that it will insist on “more than just words.”
8:07AM ( 6 hours ago )
As Indonesia cases soar, medical workers bear the burden
While Indonesia has recorded more deaths from the coronavirus than any other Southeast Asian country, it also has seen the most fatalities among medical workers in the region
1:24AM ( 13 hours ago )
Firefighters overtaken by flames in California mountains
More than a dozen firefighters were overrun by flames while trying to protect a fire station in rugged mountains near the central California coast
11:53PM ( 14 hours ago )
AP Business - Industries
The Latest: Oklahoma female prisoner treated for virus dies
A female Oklahoma state prison inmate treated for coronavirus has died, the Oklahoma Department of Corrections said
3:06PM ( 23 hours ago )
The Latest: CEOs pledge safety for coronavirus vaccines
Top executives of nine drugmakers likely to produce the first vaccines against the new coronavirus are promising they’ll be safe and effective
1:08PM ( 1 day ago )
Companies testing vaccines pledge safety, high standards
Top executives of nine drugmakers likely to produce the first vaccines against the new coronavirus are taking the extraordinary step of  promising they'll be safe and effective
12:46PM ( 1 day ago )
AP Business - Health Care
Biden aims to rebuild 'blue wall' in appeal to autoworkers
Joe Biden is making a direct appeal to blue-collar workers who might have voted Republican four years ago but now regret it
2:35PM ( 17 minutes ago )
Trump plans for Nevada rallies conflict with virus limits
President Donald Trump’s plans to hold weekend rallies in Las Vegas and Reno are in jeopardy after local officials warned they would violate Nevada’s ban on gatherings of more than 50 people because of the coronavirus
2:34PM ( 18 minutes ago )
'Unprecedented' Pacific Northwest fires approach Portland
Firefighters in the Pacific Northwest are scrambling to keep up with dozens of catastrophic fires in the region that have forced people to flee their homes and trapped firefighters and civilians
2:32PM ( 20 minutes ago )
Book: Trump said of virus, 'I wanted to always play it down'
A new book reveals that President Donald Trump seemed to understand the severity of the coronavirus threat even as he was telling the nation that it was no worse than the seasonal flu and insisting that the U_S_ government had it totally under control, According to Bob Woodward's book, Trump told the journalist on Feb_ 7: “You just breathe the air and that’s how it’s passed."
2:26PM ( 26 minutes ago )
Dem report: Postal Service changes delay prescription drugs
Delivery of mail-order prescription drugs was delayed significantly this summer after the new postmaster general ordered major changes in U.S. Postal Service operations
2:13PM ( 39 minutes ago )