By
Bhushan Akolkar
April 23rd, 2024
Despite the encompassing growth that marked US market and tech stocks, significant losses were still recorded.
Stocks in the US market went on a bullish rampage for the fourth time in a row as investors continue to weigh in on impressive earnings reports as the marker of a recovering economy.
In terms of the rate of gain, the recovery in US stocks was led by the S&P 500 Index (INDEXSP: .INX) which soared 0.94%, atop a 42.84 point increment to 4,589.38. The Dow Jones Industrial Average (INDEXDJX: .DJI) added 224.09 points atop a 0.63% to close Wednesday’s session at 35,629.33. The Nasdaq Composite (INDEXNASDAQ: .IXIC) also benefited immensely from the growth in major tech stocks as it closed out at 14,417.55 from a 0.50% growth rate.
“Emotion is winding down and greed is replacing fear – fear of missing out on a post correction rally is starting to become a more powerful emotion than the fear that it might go down more if you stay in,” said Leuthold Group chief investment strategist Jim Paulsen. “People are starting to decide that maybe last Monday’s low was the low for the correction. We’ve had good reminders that fundamentals are good with earnings reports, they started with financials but have gotten a lot better since.”
Per the individual performances, Alphabet Inc (NASDAQ: GOOGL) was amongst the biggest gainers on Wednesday. The tech giant’s stock moved 7.52% to $2,960 after revealing earnings that beat analysts’ expectations. The multinational unicorn also announced a 20-for-1 stock split. Apple Inc (NASDAQ: AAPL) inked a slight gain of 0.7% to $175.84 while Meta Platforms Inc (NASDAQ: FB) added $4 on 1.25% increment to $323.
“Technology companies were some of the hardest hit in January, as investors feared higher interest rates would expose their lofty valuations and raise their operating costs,” said Jeff Kilburg, chief investment officer at Sanctuary Wealth. “After a dramatic pullback in the tech sector, investors bargain hunted some tech names that had been battered all January.”
Amid Growth in US Market Stocks, Significant Losses Abound
Despite the encompassing growth that marked US market and tech stocks, significant losses were still recorded. Paypal Holdings Inc (NASDAQ: PYPL) was amongst the worst performers on Wednesday, sliding by 24.59% in what came off as one of the company’s worst daily routs in years. Investors turned bearish on the payment giant after it reported disappointing quarterly guidance fueled by harsh inflationary realities.
Netflix Inc (NASDAQ: NFLX), MicroStrategy Incorporated (NASDAQ: MSTR), and Block Inc (NYSE: SQ) all lost more than 6% as the total losses recorded in tech stocks almost counterbalanced the overall gains.
With the general market through major averages looking healthy, it indicates how relaxed investors are with the Federal Reserve and policymakers in the Federal Open Market Committee (FOMC) have decided not to let the proposed rate hike impact on the daily health of the capital markets. From the current standpoint, more bullish recovery strides are bound to be recorded in the coming days.