The Nasdaq recorded Tuesday on Wall Street its strongest daily increase since November, taking advantage of the strong rebound in technology stocks which had ended sharply down the day before.
The Nasdaq index, which includes the big names in tech, rose 3.69% to 13,073.82 points.
Digital giants Amazon, Facebook, Apple and Alphabet (the parent company of Google) all climbed around 4% on Tuesday.
The Dow Jones rose 0.10% to 31,832.74 points and the extended S&P 500 index appreciated 1.42% to 3,875.44 points.
“This substantial increase is a strong sign that the Nasdaq may have bottomed out,” said Peter Cardillo of Spartan Capital Securities.
The index with strong technological coloring of Wall Street had indeed suffered last week and Monday from a sector rotation to the detriment of tech stocks and to the benefit of cyclical stocks, particularly dependent on the economy.
Market players are anticipating a return to normal in the US and global economy this year thanks to vaccination campaigns and the slowdown in the spread of the pandemic.
The impending enactment of Joe Biden’s stimulus package bolsters hopes of a quick reboot. The text, which includes aid totaling 1.9 trillion dollars, will be put to the vote on Wednesday in the House of Representatives, controlled by the Democrats.
A too rapid recovery makes some observers fear an overheating of the economy which would force the Federal Reserve to raise its key rates.
As a result, bond yields, which move in the opposite direction to prices, have increased in recent weeks. But on Tuesday, the 10-year rate on US Treasuries retreated to 1.53%.
Among the values of the day, GameStop has soared 27% and has posted gains of almost 80% since the start of the week. The action of the chain of video game stores, popular with stock marketers, is experiencing a new meteoric rise after the saga of the end of January which had already propelled it to new heights and had blown a wind of panic on Wall Street.
On Monday, the company announced the establishment of a strategic committee within the board of directors responsible for accelerating the company’s digital transition and led by activist shareholder Ryan Cohen.
Tesla, which had fallen in recent sessions like the other big names on the Nasdaq, has regained its colors by climbing by almost 20%. The electric vehicle maker also benefited from good sales figures in China in February.
Beyond Meat, which offers plant-based alternatives to meat, gained 3.16%. The American start-up has announced that it is expanding its partnership with the Walmart department store chain (+ 0.79%) and will now offer its “Hot Italian” sausages in around 400 stores in the United States in addition to its other products already available.
MoneyGram climbed 4.62%. The American specialist in international money transfers has ended its strategic partnership with Ripple, a start-up specializing in the blockchain that has developed its own cryptocurrency, XRP. The companies did not detail the reasons for stopping this collaboration.
Connected exercise bike maker Peloton soared 14.47% after announcing it planned to launch in Australia before the end of the year.