• Mon. Sep 21st, 2020

Dimancherouge

Technology

Dow Rises Over 300 Points As Tech Stocks Continue To Rebound

Topline

Stocks finished higher on Monday as tech shares continued to rebound and optimism around a coronavirus vaccine sparked a broader market rally.

Key Facts

The Dow Jones Industrial Average was up 1.2%, over 300 points, on Monday, while the S&P 500 rose 1.3% and the tech-heavy Nasdaq Composite gained 1.9%.

Technology stocks continued to rebound from last week’s losses, with market leader Apple rising over 3% and Microsoft over 1%.

The tech sector also rallied on news of Nvidia buying chipmaker Arm Holdings from SoftBank for $40 billion, causing a broad rally in Semiconductor and chip stocks.

Shares of Oracle rallied over 4% after ByteDance rejected Microsoft’s bid to buy TikTok’s U.S. operations and instead chose Oracle to take a significant stake in its U.S. business.

Market sentiment was also lifted by rising optimism for a coronavirus vaccine: AstraZeneca, which has partnered with the University of Oxford, resumed phase three trials for its vaccine candidate in the U.K. following a brief halt due to safety concerns. 

Pfizer CEO Albert Bourla, meanwhile, said on Sunday that a coronavirus vaccine could be widely distributed in the United States before the end of 2020.

Tangent

Shares of daily fantasy and sports-betting company DraftKings surged by over 16% on Monday after the company announced a new partnership with sports entertainment giant ESPN. Despite going public last April—at a time when there were few live sports to bet on, DraftKings’ stock has now risen more than 160%.

Key Background

Stocks are attempting to recover from last week’s losses. The S&P 500 fell 2.5% last week, its worst one-week drop since late June, while the Nasdaq fell more than 4% for its worst week since March. Amid the wider tech sell-off last week, the Nasdaq briefly entered correction territory on Tuesday, after falling 10% in just three days of trading.

Further Reading

These Stocks Will Outperform The Market If A Coronavirus Vaccine Is Approved, According To Experts (Forbes)

A Biden Victory And Split Congress Is Best For Stocks, But Here’s What Would Kill Markets After Election Night (Forbes)

DraftKings Stock Jumps Over 16% After Announcing ESPN Deal (Forbes)

Stock Market Rally: Dow Jumps Over 400 Points As Tech Shares Rebound (Forbes)

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