Dow surges more than 400 points as tech’s best day since April sparks a market-wide rally
Stocks ripped higher on Wednesday as tech shares posted their best day in about four months, clawing back some of the steep losses that knocked the S&P 500 and Nasdaq Composite back below their record highs.
The Dow Jones Industrial Average closed 439.58 points higher, or 1.6%, at 27,940.47. The S&P 500 jumped 2% to 3,398.96 and the Nasdaq Composite advanced 2.7% to 11,141.56. It was the S&P 500′s best day since June 5, when it popped 2.6%. The Nasdaq had its biggest one-day gain since April 29, when it surged 3.6%.
At the S&P 500 sector level, tech rallied 3.4% and posted its biggest one-day gain since late April 29. Over the past week, however, the sector is still down 8.4%.
Analysts also said the Nasdaq’s ability to hold its 50-day moving average, a technical support level, was key in reversing the market’s direction.
“If you haven’t bought anything, maybe you dip your toe in,” CNBC’s Jim Cramer said on “Squawk on the Street.” However, he also urged investors be careful because “there is a bubble in a lot of tech stocks that are very hard to try to value.”
Reference: CNBC, Reuters
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