Home Business Markets Tech rally ends 5 day slump on Wall Street

Tech rally ends 5 day slump on Wall Street

But will it last?

Jack Derwin

Digital Journalist, Your Money

US equities rallied across the board on Monday as investors reaffirmed their faith in the tech sector and growth, breaking a five-day losing streak on Wall Street.

The Nasdaq shot up 2.02 per cent, leading the S&P 500 1.47 per cent higher and helping add 200 points to the Dow Jones (1.79 per cent).

With 90 per cent of listed companies closing in positive territory, the session signalled a welcome bounce for investors, with US equities having declined for much of March so far.

The rally comes as investors appear ready to put money back on the table to chase growth.

Since the [US] Fed took their foot off the pedal, we’ve certainly seen some of the gains and some of the flows be directed towards some of the tech stocks,” analyst Kyle Rodda of trading firm IG told Trading Day.

“That really drove the rally.”

The index’s outsized FAANG stocks all enjoyed a shot of adrenaline, with Apple the best performer (3.46 per cent).

That Wall Street rally is expected to feed into a positive session on global equity markets on Tuesday.

“We’re going to be playing a little bit of catchup today [on the ASX],” Rodda said.

Whether the momentum can continue into a multi-day rally though remains to be seen.

Watch Rodda’s full comments above.

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