This past summer may have felt like a party on the markets, fuelled by a rally among tech shares, all that seemed to have come to a halt this week ... but today might be different.
Markets on Wall Street, as well as Canada’s main stock index, were on track to turn things around on Wednesday, despite posting a lower open. The TSX jumped more than 200 points whole Dow rallied more than 300.
Tech stocks have been trying to claw back some of the ground lost over this past three-session rout that took the Nasdaq from breaking record highs day after day into correction territory, losing more than 10% of its value in the process.
Some of the biggest names in tech have lost much of their market cap in that short amount of time:
- Apple Inc. (NASDAQ: AAPL): $318 billion
- Microsoft Corp. (NASDAQ: MSFT): $219 billion
- Amazon.com Inc (NASDAQ: AMZN): $191 billion
- Tesla Inc. (NASDAQ: TSLA): $109 billion
Each of these companies have been moving higher in early Wednesday trading.
A success story for the day is
Peloton Interactive Inc. (NASDAQ: PTON), a manufacturer of interactive fitness biking equipment who announced
a lower price for its entry level cycling device and some new products just as consumers are likely to start thinking about the holiday season.
This sell-off of big tech stocks on Wall Street not only pulled US benchmarks lower, but it has spread to Asian markets, as well. The recent revival of the US / China econimic dispute hasn't helped matters. Softbank's bullish bet on tech took a bite out of the Japanese economy, as well.
UK-based medical company
AstraZeneca (NYSE: AZN) put its late-stage trial for a potential COVID-19 vaccine on hold after a patient's fell under an unexplained illness.
Meanwhile, despite a lack of economic drama, the Bank of Canada is scheduled to announce its plans for its key interest rate on Wednesday. The rate has held steady at 0.25% since March, before the economic shutdown hit from the lockdowns under COVID-19.
After dropping more than 7% on Tuesday, crude oil prices were higher, as was the price of gold and the Canadian dollar rose 1/10
th of a cent to 75.63 US.
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