Nasdaq Notches Best Day Since April as Bears Flee on Tech Rebound

©Investing.com

Investing.com -

By Yasin Ebrahim

Investing.com – The Nasdaq notched its best day in more than four months on Wednesday, as Apple (NASDAQ:AAPL) and Tesla clawed back some of their recent losses after traders snapped up beaten-down tech stalwarts.

The Dow Jones Industrial Average rose 1.60%, or 439 points. The S&P; 500 was up 2.02%, while the Nasdaq Composite added 2.71% to notch its best day since Apr. 29.

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 4% despite reports suggesting its proposed deal to buy TikTok is in jeopardy.

TikTok parent Bytedance is reportedly in talks with U.S. government to discuss the possibility of avoiding a sale ahead of Trump-administration imposed Sept. 15 deadline, The Wall Street Journal reported, citing people familiar with the matter.

The tech-heavy Nasdaq was also lifted by an 11% 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 1%4, 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 2.9%, led by Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD) and Qualcomm (NASDAQ:QCOM).

Elsewhere on the earnings front, Lululemon Athletica (NASDAQ:LULU) fell 7.5% as investors overlooked the company's better-than-expected quarterly results.

Airlines also struggled, paced by a nearly 3% decline in United Airlines Holdings (NASDAQ:UAL) after the carrier trimmed its third-quarter guidance on capacity and passenger revenue.

American Airlines (NASDAQ:AAL) fell 4%, Delta Air Lines (NYSE:DAL) and Southwest Airlines (NYSE:LUV) down more than 2% and 3% respectively.

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

Investing.com offers an extensive set of professional tools for the financial markets.
Read more News on Investing.com and download the new Investing.com apps for Android and iOS!Copyright 2020 Fusion Media Limited. All Rights Reserved.Provided by SyndiGate Media Inc.