Day Traders Diary
The major averages staged a strong rebound following a steep three day sell off. The Dow Jones Industrial Average traded up 439 points higher, or 1.6%. The S&P 500 jumped 2% and the Nasdaq Composite advanced 2.7%.
The major averages trimmed their gains with less than 30 minutes left in the session after The Wall Street Journal reported ByteDance and the U.S. government were discussing ways to avoid the sale of TikTok's U.S. operations. Walmart and Microsoft, two companies that were in talks to buy TikTok, gave back some of their solid gains.
Shares of Tesla, which had their single worst day ever on Tuesday dropping 21%, rose 10% Wednesday. Apple, which lost more than 6% in the previous session, was up by 4.4%.
Those two stocks, along with Microsoft, Amazon, Alphabet and Facebook, lost $1 trillion in market value the last three days. All six rebounded Wednesday.
Wall Street was coming off its worst three-day stretch in months. Over the previous three sessions, the S&P 500 lost nearly 7%. The Nasdaq sold off by more than 10% over the previous three days amid a rotation out of tech and into more beaten-down names. Both benchmarks reached all-time highs in the prior week.
At the S&P 500 sector level, tech rallied 3.6% and was on pace for its biggest one-day gain since late April. Over the past week, however, the sector is still down about 8%.
Many on Wall Street believe the technology weakness derived from worries that the massive tech run-up pushed valuations to unsustainable levels. Even with last week's pullback, the Nasdaq is up more than 60% from its March bottom.
U.S. Treasuries ended the session mixed. The 2-yr yield declined one basis point to 0.13%, while the 10-yr yield increased two basis points to 0.70%. The U.S. Dollar Index declined 0.2% to 93.24.
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