Tech stocks were back big this morning as the NASDAQ bounced off of its 50-day moving average.
As of noon New York time, the Standard & Poor’s 500 was up 2.16% and the NASDAQ Composite was ahead 2.69%. The Technology Select Sector SPDR ETF (XLK) had gained 3.40%.
Among the big tech stocks hammered in the last three sessions, Apple (AAPL) had gained 4.56%, Microsoft was up 4.62%, and Nvidia (NVDA) was higher by 5.92%.
But the gains were as steep among less widely held technology shares. Skyworks Solutions (SWKS) gained 5.05%. Infineon Technology (IFNNY) was up 5.57%. ASML Holding (ASML) picked up 3.57%.
Moves of interest:
Gold, which had sold lower during the drop was up this morning with Barrick Gold (GOLD) higher by 356%. Gold, it seems, was used to raise cash during the drop and has now climbed higher along with the general market.
Re-opening dependent consumer stocks aren’t doing well today with American Airlines (AAL) down 5.05%, Carnival (CCL) dropping 3.74%, and Six Flags (SIX) lower by 1.23%.
Those who are claiming that the three day sell off, which did move the NASDAQ 100 into correction territory, has “reset” the market are engaged in wishful thinking, in my opinion. Nobody seems in any hurry to step out of the stocks. Market volatility is on an upswing, but investors and traders are ready, it seems, to step right back into the game.
This remains a market where nothing succeeds like momentum–but where nerves get a little more stretched with every big downdraft.
There’s an awful lot of cash looking for someplace to go. And it will take more than a 3-day drop to scare those dollars away from chasing the winners.
According to a Yahoo Finance-Harris poll published today and conducted from September 4 to 6, 33% of people holding stock indicated they’ve been trading more since the pandemic began and a similar number said they’re trading individual stocks more, as opposed to ETFs and mutual funds. 43% of retail investors said they are using options, margin, or both. 23% of respondents are just using options and 10% are just using margin.