Nasdaq Racks Up Positive factors as Falling Charges Open Door for Progress Commerce


© Reuters.

By Yasin Ebrahim – The Nasdaq rebounded Tuesday, as strength in U.S. bond rates faded, paving the way for traders to renew their bullish bets on growth stocks following a steep selloff.

The jumped 4.2%. The {169|Dow Jones Industrial Average}} rose 0.52%, or 164 points, and had hit a intraday record of 32,150.32, and the rose 1.91%, 

Mega-cap tech stocks were back in favor following an 11% correction in three weeks as fell after the bond prices, which trade inversely to yields, hit oversold levels.

Apple (NASDAQ:), Microsoft (NASDAQ:), NASDAQ:), Alphabet (NASDAQ:), Facebook (NASDAQ:) and were sharply higher.

In the short-run market participants believe the rally in growth will remain in place.

“For now, the liquidity-fueled BTD (buy the dip) remains in place- and we would expect more follow-through on this tech rally over the short-run,” Janney Montgomery Scott said. “In the event of a lower rate environment ahead, we would expect tech (growth) to perform much better than it has been more recently.”

Tesla (NASDAQ:), which was down about 40% since its recent selloff, was up more than 19%, riding fresh investor appetite for growth stocks and signs the electric vehicle maker is winning market share China.

“Early this morning the China Passenger Car Association (CPCA) released its February numbers which showed a snapback in demand for Tesla in this key region,” Wedbush said in a note. “For February, Tesla delivered 18.3k vehicles during the month which were up 18% from January and appear to be on a strong trajectory into March in our opinion,” it added. 

Cyclical stocks, which have assumed the leadership role in the broader market, also underpinned the day of green on Wall Street, with financials, industrials and materials trading higher.

Energy, however, proved an exception to the rally as oil prices continued to retreat following a 22% rally in February. Still, the pullback in oil prices is expected to be temporary on a snapback in fuel demand as the economy reopens.

In other news, Stitch Fix (NASDAQ:) cratered nearly 30% after subscription-based apparel retailer reported third-quarter results that fell short of estimates and cut its guidance for the coming fiscal year ending in July.

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