Tech stocks stage sharp rebound as bond yields fall from highs

Reuters / Lucas Jackson

The Nasdaq 100 surged on Tuesday after it entered into correction territory on Monday, falling more than 10% from its recent highs.The volatility in tech stocks has been driven by movements in bond yields, which fell on Tuesday.Sign up here for our daily newsletter, 10 Things Before the Opening Bell.US tech stocks staged a rebound on Tuesday after falling into correction territory on Monday, as movements in bond yields continued to have an outsized influence on the sector.
The Nasdaq 100 traded up more than 2% on Tuesday, while the S&P 500 and Dow were both slightly higher in morning trades.
Interest rates fell on Tuesday, with the 10-Year US Treasury Note falling to 1.54% from a high on Monday of 1.59% as more supply in the form of 3-year notes were set to be auctioned on Tuesday.
Here’s where US indexes stood at 9:30 a.m. ET on Tuesday:
S&P 500: 3,855.75, up 0.96%Dow Jones industrial average: 31,984.84, up 0.57% (182.40 points)Nasdaq composite: 12,925.41, up 2.34%Ark Invest’s Cathie Wood is sticking with her strategy of investing in high-growth technology names that are primed for long-term disruptive innovation, according to a Monday afternoon interview with CNBC. Wood said she is even more confident on her top holding, Tesla, following the recent decline and also sees more upside ahead for bitcoin.
But analysts from JPMorgan think investors should stick with the reopening trade and favor value and cyclical stocks over growth and technology stocks, according to a Monday note.
Coinbase, which is set to go public via a direct listing later this month, saw its valuation hit $90 billion in the last private market auction before the listing.
GameStop continued to rally on Tuesday, surging above $200 for the first time since its epic January short-squeeze following Monday’s announcement of activist investor Ryan Cohen leading a committee to transition the video game retailer into an e-commerce company.
Oil prices were higher. West Texas Intermediate crude jumped as much as 0.25%, to $64.92 per barrel. Brent crude, oil’s international benchmark, rose by 0.09%, to $68.36 per barrel.
Gold jumped as much as 2.3%, to $1,715.10 per ounce.
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