Home > Market update: Tech stocks lead as Wall Street bounces, oil falls

Market update: Tech stocks lead as Wall Street bounces, oil falls

  • The Dow and S&P 500 also edged higher amid a rebound in tech and airline stocks bounce, while oil prices slid further.

  • Microsoft and Netflix shares both gained nearly 4% as the Nasdaq Composite added 2.9%

  • Investors await a policy announcement from the US Federal Reserve, with markets anticipating a 25 basis point interest rate hike.

Nasdaq rose nearly 3% on Tuesday as Wall Street bounced higher to recoup losses registered on Monday. The tech-heavy Nasdaq moved +2.9%, while the S&P 500 gained 2.2% and the Dow Jones Industrial Average added 600 points, as it gained 1.8%.

US stocks gained ahead of the Federal Reserve’s first interest rate hike since 2018. It is expected the US central bank will raise rates by 25 basis points. 

The upside on Tuesday also comes amid a fresh round of ceasefire negotiations between Ukraine and Russia, while reports suggest US President Joe Biden will be attending a NATO meeting in Europe.

Tech stocks lead bounce

Tuesday saw tech stocks take the lead following recent weaknesses that helped pull benchmark indexes down. Shares of Microsoft (NASDAQ: MSFT) rose 3.9% as did those of streaming giant Netflix (NASDAQ: NFLX). The gains came after Wall Street analysts reiterated the stocks’ overweight ratings.

Elsewhere, shares of computer technology firm Oracle Corp. (NYSE: ORCL) rallied 4.6%, while Nvidia (NASDAQ: NVDA) gained 7.7% and Advanced Micro Devices (NASDAQ: AMD) added 6.9%.

Airline stocks also saw significant gains, with United Airlines (NASDAQ: UAL) and American Airlines (NASDAQ: AAL) both adding more than 9%. Delta Air Lines (NYSE: DAL) also edged higher, gaining 8.7%.

Oil slides below $100 a barrel

Commodities saw another bout of downward pressure with oil prices extending losses below the $100 per barrel mark. This came amid supply shocks exacerbated by the war in Ukraine.

US benchmark WTI Crude fell 8% to hit prices around $94 a barrel to push losses over the past week close to 28% since the slip from highs of $130 a barrel recorded last week.

Gold down, Bitcoin up

Gold prices also eased lower on Tuesday, with the precious metal cutting 2.2% off its value to touch $1,917 per ounce.

In cryptocurrencies, Bitcoin (BTC-USD) bounced alongside US stocks. As of writing, the cryptocurrency was up 2% and traded around $39,496, while Ethereum (ETH-USD) was 3.5% up in the past 24 hours to trade near $2,620.

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