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As the clouds of COVID-19 concerns continue to hover over Wall Street, tech and software companies see a major surge due to larger demand and the changing economic dynamics. Dow Jones and other indices moved higher.
It was a fair show at Wall Street on Wednesday as stocks continued to rise further. Tech was a dominating sector for the major part of Wednesday’s trading session with Apple Inc (NASDAQ: AAPL) leading the show. The rise in the stock market helped the Dow Jones Industrial Average (INDEXDJX: .DJI) to close 0.7% higher gaining 177 points by the day end. At Wednesday closing, it reached the 26,067 levels.
Similarly to Dow, other indices being supported by positive stock market tendencies moved higher. S&P 500 (INDEXSP: .INX) and the Nasdaq Composite (INDEXNASDAQ: .IXIC) advanced 0.8% and 1.2% respectively.
The tech space was majorly dominating Wednesday’s stock market rally. Cupertino-based tech giant Apple made a record high surging 2.3% and closing at $381.37. With yesterday’s surge, Apple’s market cap has also hit $1.65 trillion and is on its way to becoming the most-valued public listed company. Since the market crash in March 2020, the AAPL stock has surged over 70% on Wednesday closing.
Other tech giants in the trillion-dollar-club like Microsoft Corporation (NASDAQ: MSFT) and Amazon.com Inc (NASDAQ: AMZN) gained 2.2% and 2.7% respectively. OTT streaming giant Netflix Inc (NASDAQ: NFLX) surged around 2%.
As more people work from home during the COVID crisis, the tech sector has remained largely beneficial out of it. Speaking about the tech sector, Christian Fromhertz, CEO of The Tribeca Trade Group, told CNBC:
“It seems like you flip a switch when those Covid cases go up, the country takes a step back in terms of reopening the economy and all those names find high demand. If that changes, he added, “people will start to look at the more under-owned names once again.”
Rising Coronavirus Cases Still Concerning U.S. Investors
Wall Street still remains under a major pressure of the rising coronavirus cases in the U.S. On Tuesday, the U.S. registered a major spike of 60,000 COVID-19 cases taking the total tally to over 3 million. So far, the total COVID deaths have crossed 131,000 marks only in the United States.
As the United States remains the most affected country with coronavirus, stock markets have remained jittery for some time. Moreover, despite the rapid pace of vaccine research, we are yet not close to finding the real solution. Thus, the investors are anticipating some more economic headwinds in the coming quarters.
However, White House economic advisor Larry Kudlow tried to assuage the concerns of the economic impact of coronavirus. Kudlow stresses data which he thinks suggests a sharp recovery in the market. Speaking at the CNBC’s Squawk Box, Kudlow said:
“No one’s denied we’ve had a huge jump in cases in certain hot spots. However, “one cannot rule out: There’s a lot of scenarios here. We really don’t have any real experience in econometrics modeling for this type of thing. Because so much is generated by the virus. At the moment, we’ve created 8 million new jobs the last couple of months. … Virtually every piece of data shows a V-shaped recovery.”
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