Midday Market Update: Stocks Shoot Higher as Tech Recovers

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Stock gains accelerated by midday Monday, as tech stocks busted through fears related to large brands pulling ad spend from social media platforms such as Facebook and Twitter.

All three major U.S. indices rose, with the S&P 500 gaining 1.25% by midday and the Nasdaq up 1%. In the morning, the S&P 500 was flat, with most cyclical sectors up, but the large-cap technology stocks down. The Nasdaq had fallen 0.7% before reversing course. The 10-Year Treasury yield was pressured, dipping to 0.64%. 

Virus cases are still surging in the U.S., a trend that has moderated in the last few days, but that is still high relative to a month ago. And 12 states are halting reopening plans. Last week was a rough one in stocks, with the S&P 500 falling almost 3%.  

Facebook  (FB) - Get Report and Google  (GOOGL) - Get Report were down more than 2% morning as big brands like Starbucks  (SBUX) - Get Report and Unilever  (UN) - Get Report have announced they are pulling ad spend because of offensive content and a lack of moderation of hate speech and misinformation. But then Facebook and Google rose 0.5% and 1.9%, respectively, providing support for tech indices and ETFs. 

Cyclical stocks have been holding strong all day; oil, banking and consumer discretionary are all up between 1% and 2%. 

Crude oil rose 1.9% to $39 a barrel. Chesapeake Energy's  (CHK) - Get Report bankruptcy filling likely means less supply and support for oil prices. The company was a large driller of shale. The stock fell 7%. 

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