Stocks jumped on Thursday as Wall Street recovered from a tumble in the previous session that sent two of the major indexes into the red for 2018.
The Dow Jones Industrial Average rose 401.13 points to 24,984.55 — snapping a three-day losing streak — as Microsoft outperformed. The S&P 500 gained 1.9 percent to close at 2,705.57 as consumer discretionary and tech both rose more than 3 percent. The broad index also closed higher for the first time in seven sessions. Both are back into the green for 2018, but barely.
The Nasdaq Composite climbed 2.95 percent to 7,318.34 as Amazon rallied 7.1 percent ahead of the release of its earnings report. A 3.4 percent jump in Facebook and a 3.7 percent gain in Netflix also lifted the Nasdaq.
“What happened yesterday was the market got way oversold,” said Tom Essaye, founder of The Sevens Report. “Was a decline on earnings warranted? Yes, but not 10 percent.”
“The market is now correcting that a bit,” Essaye said.
On Wednesday, the Dow plunged 608.01 points, erasing all of its gains for the year. The S&P 500 dropped 3.1 and also turned negative for the year. The Nasdaq fell 4.4 percent, entering correction territory.
These losses added to the indexes’ steep decline for the month. Through Thursday’s close, the Dow and S&P 500 were down 5.6 percent and 7.2 percent for October, respectively. The Nasdaq, meanwhile, had lost 9.1 percent. It’s going to be more volatile on Friday after Google-parent Alphabet and Amazon sliding after releasing their quarterly results.
SOURCE: Fred Imbert