Dow Racks Up Gains as Tech Bulls Fight Back

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By Yasin Ebrahim

Investing.com – The Nasdaq rebounded on Wednesday, led by Apple (NASDAQ:AAPL) as bargain-hunting investors swooped in to snap up beaten-down tech stalwarts.

The Dow Jones Industrial Average rose 2.40%, or 659 points. The S&P; 500 was up 2.63%, while the Nasdaq Composite added 3.1% after falling 10% in just under a week, the fastest correction on record.

The sea of red that has washed over tech for the three-straight trading sessions turned green, with Apple rising more than 5% as investors resumed their bullish bets on the tech giant ahead of its new iPhone launch widely expected later this year.

Facebook (NASDAQ:FB) Alphabet (NASDAQ:GOOGL), Amazon.com (NASDAQ:AMZN), and Microsoft (NASDAQ:MSFT) were also up, with the latter rising more than 5%.

The tech-heavy Nasdaq was also lifted by a 7% surge in Tesla (NASDAQ:TSLA), a day after the electric automaker slumped 20% after it failed to make the cut to be included in the S&P; 500 despite generating four consecutive quarters of growth.

But Slack Technologies (NYSE:WORK) sidestepped the rally in tech, plunging 16%, as its better-than-expected second-quarter results were offset by signs of slowing growth in billings.

"Slack's billings miss … will be a shock to the bulls anticipating a clean beat," Wedbush said. "It appears elevated churn and overall macro softness impacted the company's results."

Philadelphia Semiconductor Index also contributed to the rebound, rising 3%, led by Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD) and Qualcomm (NASDAQ:QCOM).

Elsewhere on the earnings front, Lululemon Athletica (NASDAQ:LULU) fell 9% as investors overlooked the company's better-than-expected quarterly results.

Airlines also struggled, paced by a nearly 4% decline in United Airlines Holdings Inc (NASDAQ:UAL) after the carrier trimmed its third-quarter guidance on capacity and passenger revenue.

American Airlines (NASDAQ:AAL) fell nearly 4%, Delta Air Lines (NYSE:DAL) and Southwest Airlines (NYSE:LUV) down 2%.

On the economic front, U.S. job openings rose 10%, or 5.8 million in July, though that was down from almost 7 million seen in June.

The signs of a slowdown in hiring kept up concerns about the pace of recovery at a time when parts reopening measures appear to be gathering steam once again.

On the Sept. 30, restaurants in New York City will resume indoor dining, but with capacity capped at 25%, New York Gov. Andrew Cuomo said Wednesday.

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