U.S Stocks rallied higher at the most recent trading session, led by big tech brands (Apple & Oracle), as positive macros on the COVID-19 vaccine prompted long bets on U.S stocks.
Oracle Corporation stock price gained 4.32%, as the tech firm appeared to be the chosen partner for TikTok business in the U.S. ByteDance. The owners of TikTok, had earlier disclosed that it preferred to partner, rather than sell, TikTok’s U.S. business, rejecting an offer for outright sale from Microsoft.
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Microsoft’s stock price ended slightly higher at 0.68%. Apple Inc was up by more 3%, while the stock price of Facebook; Alphabet, owners of Google; and Amazon.com ended the trading session bearish.
The Dow Jones Industrial Average gained 1.18%, and the S&P 500 was up by 1.27%, while the Nasdaq Composite (comprising of tech heavy-weights) gained 1.87%.
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The tech-heavy Nasdaq ended its two-day losing streak, as deal activity lifted sentiment on the sector.
Stephen Innes, Chief Global Market Strategist at AxiCorp, in a note to Nairametrics, spoke on the fundamentals that keeps stock traders hopeful.
“Even though the Feds are unlikely to go full tilt, there is sufficient policy juice in the tank, not to mention what’s in reserve to keep the market humming along quite well,”
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“Despite the sharp sell-off last week, investors remain optimistic about the US equity market’s path in the coming months,”
“Economic data points to a continued recovery, while further reopening and vaccine progress will likely set the wheels in motion for another move higher in stocks.”
Investors should expect markets to remain volatile in the short-term, but the recent setback is hardly a cause for panic, especially since some of the tech giants have recently reached dizzying heights.
