Wed, 27 Oct 2021

U.S. investors ride Big Dipper as stock markets rebound

Lola Evans
06 Oct 2021, 06:15 GMT+10

NEW YORK, New York - The Wall Street roller-coaster forged on, on Tuesday, with technology stocks recouping losses of a day earlier.

All the major tech companies including the besieged Facebook rose more than two percent Tuesday.

"We're buying the dip, but the dip isn't 10% anymore. The dip is now 2%, or 4%," Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma told Reuters news agency Tuesday.

"People are trained like Pavlov's dog to buy the dip, which is reinforcing all of this."

The technology sector was the bigger winner Tuesday in percentage terms. The Nasdaq Composite gained 178.35 points or 1.25 percent to 14,433.83.

The Dow Jones industrials advanced 311.75 points or 0.92 percent to 34,314.67.

The Standard and Poor's 500 added 45.26 points or 1.05 percent to 4,345.72.

The U.S. dollar was decidedly mixed. The euro was little changed at 1.1597. The British pound see-sawed around 1.3624. The Japanese yen weakened to 111.48. The Swiss franc eased to 0.9282.

The Canadian dollar edged up to 1.2575. The Australian dollar was slightly stronger at 0.7289. The New Zealand dollar inched up to 0.6961.

Equity markets in Europe and the UK were stronger. The FTSE 100 in London gained 0.94 percent. The German Dax rose 1.05 percent. The CAC 40 in Paris climbed 1.52 percent.

On Asian markets, Chinese mainland bourses were closed on Tuesday for a public holiday. The Hang Seng in Hong Kong edged higher, adding 67.78 points or 0.28 percent to 24,105.15.

The big action was in Japan where the Nikkei 225 plummeted 622.77 points or 2.19 percent to close at 27,822.12.

The Australian All Ordinaries fell 40.30 points or 0.53 percent to 7,536.50. Technology shares fell more than three percent. The Reserve Bank of Australia left official interest rates unchanged at 0.10 percent Tuesday.

New Zealand's benchmark S&P/NZX 50 index fell more than 1 percent to 13,199.99.

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