Stocks finished higher on Wednesday, rebounding from Wall Street's sharp tech-led losses during the previous session.
The Dow Jones Industrial Average finished up 439 points, or 1.6%, to 27,940, the S&P 500 was up 2.01% and the Nasdaq rose 2.71%.
Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report led the Dow higher. Analysts at Morgan Stanley boosted their price target on the tech giant, citing an expected dividend hike in the coming weeks.
"The liquidity-driven rally that saw stocks increase over 60% from 3/23 to 9/2 took a week off around Labor Day, but appears to be back from its vacation today," Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.
"As long as the buy-the-dips mentality remains foremost in investors’ minds - and it will unless they are severely punished for it - then the bull market is likely to continue," he added.
Stocks ended sharply lower Tuesday as technology shares continued their rapid retreat. The tech-heavy Nasdaq, where stocks such as Apple (AAPL) - Get Apple Inc. (AAPL) Report and Tesla (TSLA) - Get Tesla Inc Report trade, has fallen more than 10% - a correction - since setting an all-time high last Wednesday.
Tesla shares finished Tuesday's session down 21%, its worst session ever, to $330.21. In trading Wednesday, the stock finished up 11% to $366.28.
Many analysts said the declines, particularly in the tech sector, were long overdue as valuations have been stretched.
“The bottom line is that this correction was long overdue and likely has more downside over the next few weeks (and) months as these positions are cleared out,” said analysts at Morgan Stanley. Tech stocks rose 11.8% in August.
AstraZeneca (AZN) - Get Astrazeneca PLC Sponsored ADR Report declined 2% Wednesday after halting global trials of its covid-19 vaccine candidate because a participant in a U.K. study had an unexplained illness.
The trial was halted after “a suspected serious adverse reaction in a participant in the United Kingdom,” Stat News reported. AstraZeneca is developing the vaccine candidate with the University of Oxford.
AstraZeneca, in a statement, described the halt as a “routine action which has to happen whenever there is a potentially unexplained illness in one of the trials, while it is investigated, ensuring we maintain the integrity of the trials.” The pause, the company said, will allow an independent committee to review safety data.
The messaging and collaboration platform reported a narrower fiscal-second-quarter loss on 49% higher revenue but provided disappointing billings data.