- Technology leads Wall Street’s upsurge on Thursday.
- 10 out of 11 major sectors record gains.
- CBOE Volatility Index falls more than 10%.
Following yesterday’s sharp drop, major equity indexes in the U.S. started the day higher and preserved their momentum to retrace the majority of Wednesday’s losses as investors cheered strong earnings results and took advantage of lower stock prices. The CBOE Volatility Index, Wall Street’s fear gauge, was last seen down 11.2% on the day to confirm the risk-on mood.
On the back of an 18.5% Q3 revenue increase, Microsoft shares added more than 5% and boosted the S&P 500 Technology Index, which was up 3.82% at the time of press. Additionally, upbeat earnings figures from Via, American Airline, and Twitter also helped the market sentiment improve on Thursday.
Commenting on today’s rally, “It’s a little bit of a bargain-hunting bounce back. I don’t think the markets have fully gotten over the fear factor. I think when people look at economic data and focus more on the earnings front, we are going to see more of a fundamental bounce; today is a little more technical,” Omar Aguilar, chief investment officer for equities at Charles Schwab Investment Management in San Francisco, told Reuters.
On the other hand, the only major sector that stays in the negative territory today is the S&P 500 Utilities, which usually struggles to find interest when the investors demand riskier assets.
As of writing, the Dow Jones Industrial Average was up 462.08 points, or 1.9%, at 25,046.20, the S&P 500 was adding 61.05 points, or 2.3%, to 2,717.151 and the Nasdaq Composite was gaining 262.36 points, or 3.86%, to 7,051.11.
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