Tech stocks roared higher on Tuesday as a recent sell-off in the market’s hottest sector since the onset of the pandemic gave way to a rebound rally. Investors swooped in to snatch up some of the market’s most beaten-up tech stocks during a rare reprieve from the last year’s furious rally.
It was the best day of the year for the tech-driven Nasdaq Composite, which surged 3.7% on the day.
The Dow Jones Industrial Average rose 30 points, or 0.1%, to finish at 31,832.
Huge day for Tesla. Tesla (ticker: TSLA) recently set the record for the most value lost in six weeks, shedding more than $300 billion in that time as the richly valued electric vehicle company gave up a fraction of the enormous gains it’s seen over the last year or so.
Well, Tuesday was a day of renewed bullishness for TSLA, which rallied 19.6% to finish as the S&P 500’s biggest gainer by a wide margin.
Square ( SQ), another unrepentant growth stock, also surged on Tuesday, jumping 11.5% on the day. It’s unusual for companies the size of Square and Tesla, worth $102 billion and $646 billion, respectively, to see such swift one-day gains, but tech investors have been seeing much more volatility than usual recently.
A recent rally in Treasury yields had been starting to concern tech shareholders, but yields declined Tuesday.
GameStop rally continues. GameStop ( GME), a stock much of Wall Street and the investing public had written off after its Reddit-fueled surge fizzled last month, is rallying once again, with shares up more than 100% since Thursday.
GME shares jumped 26.9% on Tuesday, as momentum from the news that Chewy ( CHWY) co-founder Ryan Cohen would be leading a committee to re-evaluate e-commerce plans at the struggling video game retailer continued sending shares higher.
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