Tech Stocks Rebound as Nasdaq Leads and Big-Caps Bounce Back

Strategic Insights -

The tech stock rally led the rebound in the market Monday, with the Nasdaq leading and Apple, Microsoft, and Intel boosting the Dow Jones Industrial Average to a nearly 200-point gain. The Nasdaq gained 1.4%, the S&P 500 rose 1.1%, and the Dow Jones industrials gained 0.5%. Small caps tracked by the Russell 2000 added 0.7%. The tech stock rally helped the Nasdaq regain its 7,970 level, which it had fallen below on May 10 for the first time since March.

Key Takeaways:

  • The Nasdaq gained 1.4% on Monday, with Apple, Microsoft, and Intel among the big-cap tech stocks that rebounded.
  • The Dow Jones Industrial Average gained 0.5%, thanks to the bounce back of big-cap tech stocks.
  • The Russell 2000 added 0.7%, tracking the small-cap stocks' positive trend.
  • The tech stock rally helped the Nasdaq regain its 7,970 level, which it had fallen below on May 10.
  • Apple is within reach of its 50-day moving average, having recently triggered the flyover line from a 135.63 buy point of a double bottom base.
  • Microsoft has re-taken its 50-day line and is back in potential buy range from a 246.23 buy point of a cup base.
  • JPMorgan and Goldman Sachs are among the blue chips in buy range, with JPMorgan remaining in a 5% buy zone from a 161.79 entry of a flat base.
  • Amgen fell 1.3% to undercut its 50-day line, after a failed breakout from a 256.70 buy point of a head-and-shoulders base.
  • Tesla reversed from an early loss to a 4% gain to reclaim its 50-day line.

Statistics:

  • The Nasdaq gained 1.4% on Monday.
  • The Dow Jones Industrial Average gained 0.5% on Monday.
  • The S&P 500 rose 1.1% on Monday.
  • The Dow Jones industrials gained 0.5% on Monday.
  • The Russell 2000 added 0.7% on Monday.
  • The total number of cumulative Covid-19 cases worldwide have topped 167 million, with nearly 3.5 million deaths, according to [1].
  • The number of new cases and deaths in the U.S. has slowed dramatically in many states, with cases approaching 34 million and more than 604,000 deaths.
  • Dow Winners: Cisco Systems, Microsoft, Intel, and Salesforce.com were among the big-cap tech stocks that rebounded, each gaining more than 1.5% on Monday.
  • Dow Losers: Amgen fell 1.3% to undercut its 50-day line, after a failed breakout from a 256.70 buy point of a head-and-shoulders base.

Sources:

  • [1] "Cumulative Covid-19 cases worldwide have topped 167 million, with nearly 3.5 million deaths."
  • Investors.com - "Tech Stocks Rebound as Nasdaq Leads and Big-Caps Bounce Back"
  • Investors.com - "U.S. Stock Market Today"
  • Investors.com - "Nasdaq Leads the Dow Jones Industrials Higher"