Big Tech roars on Wall Street
It was "Turnaround Tuesday" on Wall Street as investors went shopping for the high-growth tech names that were battered the day before.
The Dow jumped 311 points. The S&P 500 gained 45. The Nasdaq surged 178.
Nick Colas is co-founder at DataTrek Research.
“The markets are clearly trying to figure out what a post-pandemic recovery economy looks like, and that is somewhat of a tortured process, if you will. We don't know how much tech should be a part of that. We don't know how much energy should be a part of that. And right now, the markets are really fighting in between those two forces to figure out what does the economy look like going forward.”
Upbeat economic data helped improve the tone. The massive services sector continued to expand in September, according to the Institute for Supply Management.
And in corporate news....
PepsiCo beat sales forecasts thanks to solid sales of its higher-priced snacks and drinks. The company also raised its full-year sales forecast. But PepsiCo warned that it will likely raise prices again early next year as it looks to offset supply chain shortages ranging from the lack of Gatorade bottles to a shortage of truck drivers. Shares of Pepsi finished higher on the day.
Facebook was on the mend one day after its platform suffered a total blackout. The social network blamed the blackout, which also impacted Instagram, What's App and Messenger, as a mishap during routine maintenance. The stock was also in focus view as whistleblower testified before Congress. Shares of Facebook climbed 2 percent.
Crude oil prices hit a three-year high in the U.S. OPEC+ decided not to open the spigot any more than previously planned. It stuck to plans agreed to in July to boost output by 400,000 barrels per day for each month through April 2022. Crude oil prices settled just shy of $79 a barrel in U.S. trading.
