Wall Street snapped back Wednesday from its recent tumble, as the bloodletting for big technology stocks came to at least a temporary halt. Apple, Amazon, Zoom Video Communications, and other tech companies that suddenly lost their momentum late last week on worries their stocks soared too high all regained some ground, the AP reports. They helped lift the S&P 500 index 2%, its best day in three months. The Nasdaq, which includes many tech stocks, rose 2.7%. It’s coming off a 10% drop over the previous three days. The Dow closed 439.58 points higher, or 1.6%, at 27,940.47.
Tesla, which has made some of the wildest moves in recent months, rose almost 11%. A day earlier, it plunged 21.1% for its worst day since its shares began trading a decade ago. In August, it surged 74.1%. "We were due for a bounce,” Christian Fromhertz, CEO of Tribeca Trade Group, tells CNBC. “We had three days of decent selling and these things tend to get a little overextended.” But still to be determined is whether that sell-off was just a blowing-off of some steam for tech stocks that had gotten overheated—or whether it was the beginning of a more widespread downturn. “I want to see if this bounce can hold to see if there’s real buying underneath it,” Fromhertz says.
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