S&P 500 Rebounds as Dip-Buying Resumes

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S&P 500 Rebounds as Dip-Buying Resumes
Credit: © Reuters.

By Yasin Ebrahim

Investing.com – The S&P 500 rebounded Tuesday on dip-buying in big tech following a rout a day earlier.

The S&P 500 gained 1.4%, the Dow Jones Industrial Average added 1.3% or 433 points, the Nasdaq was up 1.6%.

Facebook (NASDAQ: FB ) climbed 2%, paring some of its 5% loss from Monday, after resuming service following a six-hour outage.

Sentiment on social media giant continues to be challenged amid ongoing concerns about potential regulatory as whistle blower Frances Haugen, a former Facebook product manager, testified before Congress that the social media giant's products "harm children, stoke division, and weaken our democracy."

Investors also took advantage of the dip in other big tech stocks, with Apple (NASDAQ: AAPL ), Microsoft (NASDAQ: MSFT ), Amazon.com (NASDAQ: AMZN ), and Alphabet (NASDAQ: GOOGL ) more than 1% higher.

The day of gains tech didn't spark the usual value to growth rotation as cyclical stocks were also up strong, with financials including banks leading the way.

Goldman Sachs  (NYSE: GS ), Charles Schwab (NYSE: SCHW ), Bank of New York Mellon (NYSE: BK ) were up more than 2%.

The dip-buying in tech comes even as the Treasury yields continued to climb, with the 10-year continuing to trend above 1.5%.

Energy lagged the broader-market move higher even as oil prices continued climb after major oil producers decided against lifting production.

"Many had hoped OPEC+ would increase output and help alleviate the global supply shortage. The group, however, opted to stick to its original outline of gradually releasing 400,000 additional barrels of oil per month despite calls from world leaders, including the White House, to bring more crude onto the market," Stifel said in a note.

Cryptocurrency-related stocks including Marathon Digital (NASDAQ: MARA ), Coinbase Global (NASDAQ: COIN ), and Riot Blockchain (NASDAQ: RIOT ) were pushed higher by a surge in bitcoin as the popular crypto topped $50,000.

On the earnings front, PepsiCo (NASDAQ: PEP ) was up 1% after the beverage and snack reported quarterly results that beat on the top and bottom lines, underpinned by strong performance in its North American beverage division.

In other news, Johnson & Johnson (NYSE: JNJ ) requested emergency authorization for its Covid booster from the Federal Drug Administration, sending the stock up nearly 1%.

In Washington, the impasse over the debt ceiling continued, with Senate Majority Leader Chuck Schumer reiterating that Democrats aren't willing go it alone to raise the debt limit by the Oct. 18 deadline.

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