Nasdaq up nearly 4%, Dow up 466 points

Twitter posted a 9.69% drop after Musk announced a moratorium on acquisitions as he waited for more information about fake accounts on the platform. The Associated Press

BecauseInvestmentPeople want to invest the S&P 500indexfrombear marketThe area was brought out and rebounded by this week’s sharp fall, and on the 13th, US stocks rose.

The Dow Jones Industrial Average rose 466.36 points, or 1.47%, to 32,196.66. The historical index rose 93.81 points, or 2.39%, to 4,023.89. The Nasdaq Composite rose 434.04 points, or 3.82%, to 11,805.

The historical index closed in its best one-day trend since May 4, while the Nasdaq posted its biggest one-day gain since November 2020.

Major indices are still low this week, even as stock indexes have surged. The Dow fell 2.14%, the first seven-week decline since 2001; The historical index fell 2.4%, the longest weekly decline since 2011; The Nasdaq fell 2.8% this week.

“Just like trees don’t go up in the sky, stock prices don’t go down forever,” said Sam Stovall, chief investment strategist at CFRA. “Even in a correction and near bear markets, they feel relief. The rebound is where the market is headed today.”

All sectors were higher, with consumer discretionary and information technology stocks gaining 4.1% and 3.4%, respectively. It was a broad-based rally, with nearly 95% of the stocks in the historical index in positive territory.

Nike and Salesforce rose 4.74% and 4.1%, respectively, keeping the Dow higher. American Express and Boeing also contributed 3.58% and 3.3%, respectively.

Battered tech stocks also made a comeback, with Meta Platform and Alphabet gaining 3.86% and 2.84%, respectively, while Tesla gained 5.71%. Semiconductor Pfizer and AMD also rose 9.47% and 9.26%, respectively. Apple rose 3.19% after becoming the last major technology company to exit the bear market on 12th.

After strong gains on the 12th, heavily shorted meme stocks AMC Entertainment and GameStop rose 5.54% and 9.85%, respectively.

Meanwhile, Twitter plunged 9.69% after Musk announced a moratorium on the acquisition as he awaited more details on the platform’s fake accounts. In other news, Robinhood surged 24.88% after crypto CEO Sam Bankman-Fried bought a stake.

The stock market has been faltering for months, starting with high-growth but unprofitable tech stocks late last year, and spreading to even companies with healthy cash flow in recent weeks. Losses have wiped out most of the stock market gains since the pandemic of March 2020.

Ryan Detrick, a strategist at LPL Financial, said historically and the Dow has so far avoided a bear market, but a rally on the 13th does not mean the market is out of the woods.

“In our view, there may not be much downside risk, but there could be further downside,” he said, noting that bear markets would on average go down by about 23% to 25% if not for the bearish.

One reason for the stock market’s poor performance in recent months is high inflation and the Federal Reserve’s attempt to control prices by raising interest rates. Fed Chairman Powell said in an interview with NPR on the 12th that he cannot guarantee a “soft landing” that drives inflation down without a recession.

Even as US stocks endured a two-week rally after the Fed’s first rate hike in March, those gains were ruthlessly erased in April and the sell-off continued in May. But some indications, such as investor sentiment surveys and the U.S. Treasury markets begin to stabilize, suggesting the decline may be ending, but many investors and strategists say the market may need another major sell-off.

“The stock market is really just waiting on the downside, looking for a relief rally,” said Andrew Smith, chief investment strategist at Delos Capital Advisors. But, at the end of the day, there has never been an actual dedication day. ,

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