Dow rises 150 points as tech shares rebound from big sell-off

Stocks opened higher on Wednesday as major technology shares rebounded from steep losses earlier this week.

The Dow Jones Industrial Average rose 150 points, led by gains in Boeing. The S&P 500 gained 0.6 percent as the tech sector climbed more than 1 percent. The tech-heavy Nasdaq Compositeoutperformed, advancing 1.4 percent.

Facebook shares rose more than 2 percent, while Amazon and Netflix both gained more than 3 percent. Apple and Alphabet climbed 1.8 percent and 1.9 percent, respectively.

These tech shares, which make up the popular “FAANG” trade, have been under pressure recently. Through Tuesday’s close, they were all down more than 20 percent from their 52-week highs, officially in a bear market. The sharp decline in tech helped send the Dow, S&P 500 and Nasdaq all down at least 3 percent for the week.

“Tech stocks have featured prominently in recent equity weakness,” Mark Haefele, a strategist at UBS Global Wealth Management Chief Investment Office, said in a note. “But we think it’s important to discriminate within tech. The weakness is being driven by slower growth in the consumer IT sector, but the outlook for the enterprise IT sector, which makes up the majority of global tech, is more robust.”

Traders work on the floor of the New York Stock Exchange.

Michael Nagle | Bloomberg | Getty Images
Traders work on the floor of the New York Stock Exchange.

European equities also rose on Wednesday. The Stoxx 600 index, which tracks a broad swath of European shares, rose 0.7 percent. France’s CAC 40 gained 0.6 percent while the German Dax climbed 1 percent.

U.S. stocks sold off for a second consecutive session on Tuesday, as energy shares dropped with oil prices, while retailers including Target and Kohl tumbled after weaker-than-expected earnings.

Tuesday’s declines sent the Dow and S&P 500 to their weakest levels since late October, while the tech-heavy Nasdaq dropped to its lowest level in more than seven months.

In economic data, durable goods orders fell 4.4 percent in October, more than expected. It also market the third decline in the past four months. Meanwhile, weekly jobless claims rose to a more than four-month high last week.

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