The S&P 500 rebounded Tuesday as investors took advantage of Monday’s selloff to load up on tech stocks.
The S&P 500 gained 1%, the Dow Jones Industrial Average added 0.9% or 311 points, the Nasdaq was up 1.3%.
Facebook climbed 2%, paring some of its 5% loss from Monday, after resuming service following a six-hour outage.
Sentiment on social media giant continues to be challenged amid ongoing concerns about potential regulatory as whistleblower Frances Haugen, a former Facebook product manager, testified before Congress that the social media giant’s products “harm children, stoke division, and weaken our democracy.”
The dip-buying in tech comes even as Treasury yields continued to climb, with the 10-year trending above 1.5%.
Investors also took advantage of the recent dip in other big tech stocks, with Apple, Microsoft, Amazon.com, and Alphabet being more than 1% higher.
The day of gains tech didn’t spark the usual value to growth rotation as cyclical stocks were also up against strong, with financials including banks leading the way.
Goldman Sachs, Charles Schwab, Bank of New York Mellon were up more than 2%.
Cyclical stocks were also boosted by data showing an unexpected rise in U.S. services activity in August.
“We had expected that we were going to see the index continue to glide lower this month, but the service sector is showing impressive strength and resilience,” Jefferies said in a note.
Energy lagged the broader-market move higher even as oil prices continued to climb after major oil producers decided against lifting production.
“Many had hoped OPEC+ would increase output and help alleviate the global supply shortage. The group, however, opted to stick to its original outline of gradually releasing 400,000 additional barrels of oil per month despite calls from world leaders, including the White House, to bring more crude onto the market,” Stifel said in a note.
Cryptocurrency-related stocks including Marathon Digital, Coinbase Global, and Riot Blockchain were pushed higher by a surge in bitcoin as the popular crypto topped $50,000.
On the earnings front, PepsiCo ended up nearly 1% after the beverage and snack reported quarterly results that beat on the top and bottom lines, underpinned by strong performance in its North American beverage division.
In other news, Johnson & Johnson requested emergency authorization for its Covid booster from the Federal Drug Administration.
In Washington, the impasse over the debt ceiling continued, with Senate Majority Leader Chuck Schumer reiterating that Democrats aren’t willing to go it alone to raise the debt limit by the Oct. 18 deadline.
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