Big Tech Stocks Lead U.S. Market Rebound
In a dramatic turnaround, U.S. stock indexes bounced back on Thursday, with Big Tech companies leading the charge to recover much of the previous day’s losses. The S&P 500 rose by 0.7%, the Nasdaq composite surged to a record high, and the Dow Jones Industrial Average held steady.
Apple and Nvidia were the standout performers, driving the market higher with gains of 4.3% and 4.1% respectively. Amazon also set a new record after a 1.7% increase. These gains marked a return to the dominance of Big Tech stocks in driving market growth, a trend reminiscent of last year.
The market had been experiencing a more even spread of gains this year until concerns about high inflation caused a shift in sentiment. Traders have been closely watching for signals from the Federal Reserve regarding potential interest rate cuts, with expectations now scaled back significantly.
Despite mixed data on inflation and the economy, Treasury yields remained relatively stable. Reports showing lower-than-expected inflation at the wholesale level provided some relief to investors, but underlying trends suggest inflation may still be a concern.
The job market, however, continues to show strength, with fewer workers applying for unemployment benefits. This resilience, despite high interest rates, has been a positive sign for the economy.
Amidst these developments, earnings reporting season is underway, with companies like Rent the Runway and Alpine Immune Sciences making headlines for their performance. However, CarMax faced a significant drop in its stock value after reporting weaker-than-expected profits.
Overall, the market remains cautious as investors assess the impact of high inflation and the potential for interest rate cuts. The performance of Big Tech stocks and upcoming earnings reports will continue to be key factors influencing market sentiment in the coming days.
