By Shreeshi Sanyal
(Reuters) – The Nasdaq rose early in the session on Monday as battered growth stocks attempted to return from a sharp sell-off sparked by fears of a recession caused by the central bank.
The benchmark index also showed signs of stabilizing after falling briefly from its mid-June closing low of 3666 on Friday which almost erased a sharp summer recovery.
Hints from the US Federal Reserve that higher interest rates could continue into 2023 sent the three major stock indexes down between 4% and 5% last week, with the Dow close to a bear market in the previous session.
Gains were led by sectors that include growth giants, including technology, consumer appreciation and telecom services.
Apple Inc (NASDAQ :), Microsoft Corporation (NASDAQ :), Amazon.com Inc (NASDAQ :), and Tesla (NASDAQ :), rose between 0.9% and 2.0%, boosting the Nasdaq.
“You’re seeing a comfortable rally after a very difficult period with the NASDAQ and growth stocks performing,” said Jeffrey Schulz, investment analyst at ClearBridge Investments.
“Obviously you’ve seen a lot of pain in the growth areas of the market over the past month as investors reprice higher rates on the fed funds and ultimately the final interest rate or this hiking cycle.”
Shares of casino operator Wynn Resorts (NASDAQ :), Las Vegas Sands (NYSE:) Corp and Melco Resorts & Entertainment (NASDAQ:) jumped between 11.6% and 30.4% after Macau planned to open mainland Chinese tour groups in November for the first time in nearly three years.
At 10:09 a.m. ET, the index was down 119.29 points, or 0.40%, at 2,9471.12, the S&P 500 was up 3.43 points, or 0.09%, at 3,696.66, and it rose 103.91 points, or 0.96%, at 10,971.84.
Defensive parts of the market, including sectors like utilities and real estate and the S&P 500, are down more than 1% each, indicating a risky move.
The trading sentiment earlier in the day was dictated by dramatic moves in the global forex market as the British Pound briefly touched an all-time low amid concerns that the new British government’s fiscal plan threatens to stretch the country’s finances to their limits. [MKTS/GLOB]
The Wall Street Fear Index, also known as the Wall Street Fear Barometer, is hovering near three-month highs.
Declining issues outnumbered applicants by 1.29 to 1 on the New York Stock Exchange. Advance issues outnumbered losers by 1.67 to 1 on the Nasdaq. The S&P recorded no new 52-week highs and 37 new lows, while the Nasdaq posted nine new highs and 183 new lows.