US stocks rebound after 3-day sell-off driven by tech giants

NYSE Trader
  • US stocks rebounded on Wednesday after a three-day sell-off driven by tech giants led to a more than 10% decline in the Nasdaq composite index.
  • Tech giant Apple climbed more than 3% after sliding below the $2 trillion market cap threshold on Tuesday.
  • Oil recouped a fraction of the sharp losses experienced on Tuesday, with WTI crude contracts climbing as much as 2.5%, to $37.69 per barrel.
  • Watch major indexes update live here.

US stocks rebounded on Wednesday after a three-day sell-off driven by tech shares led to a more than 10% decline in the Nasdaq composite index.

Leading the markets higher on Wednesday were the same stocks that led the market lower over the past week. Shares of Apple climbed more than 3%, while Tesla jumped roughly 5%.

Apple’s three-day decline ultimately amounted to a 14% skid, which pushed its market capitalization below the $2 trillion threshold for the first time since August 20, according to data from YCharts.com.

Here’s where US indexes stood shortly after the 9:30 a.m. ET market open on Wednesday:

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On the COVID-19 vaccine front, AstraZeneca suffered a setback after it paused its COVID-19 vaccine candidate trial due to an adverse safety event. Shares fell as much as 6%, then extended their decline on Wednesday. The development served as a reminder to investors that developing a vaccine for a novel coronavirus takes time and cannot be rushed. 

Many COVID-19 vaccine developers rallied after AstraZeneca paused its study. Moderna led all gainers, while shares of Pfizer, Sanofi, and GlaxoSmithKline also climbed.

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In the M&A space, Tiffany plunged after LVMH called off its proposed $16 billion acquisition of the jewelry retailer, citing potential trade war tariffs on US goods as the main reason.

Spot gold climbed 0.7%, to $1,945.53 per ounce. The precious metal held above the $1,900-per-ounce threshold after failing to retake $2,000 at the start of the month.

Oil recovered some of Tuesday’s losses that were spurred by industry giants that continued to slash prices because of demand weakness. West Texas Intermediate crude rose as much as 2.5%, to $37.69 per barrel. Brent crude, oil’s international benchmark, rose 1.8%, to $40.50 per barrel, at intraday highs.

Read more: 4 experts break down the drivers behind the sudden plunge in tech stocks that’s dragging the entire market lower – and share their best recommendations for what investors should do as the election approaches