--- title: "S&P 500, Nasdaq 100 Rebound Following Three-Day Tech-Led Selloff" description: "Buyers waded into the stock market on Tuesday following a three-day rout fueled by fears of a US economic slowdown and extreme tech-sector valuations." type: "NewsArticle" publisher: "Daily Maverick" site: "https://www.dailymaverick.co.za" section: "Newsdeck" author: "Bloomberg" author_url: "https://www.dailymaverick.co.za/author/bloomberg/" canonical_url: "https://www.dailymaverick.co.za/article/2024-08-06-sp-500-nasdaq-100-rebound-following-three-day-tech-led-selloff/" published: "2024-08-06T17:59:54" updated: "2024-08-06T17:59:55" lang: "en-ZA" word_count: 929 --- # S&P 500, Nasdaq 100 Rebound Following Three-Day Tech-Led Selloff > Buyers waded into the stock market on Tuesday following a three-day rout fueled by fears of a US economic slowdown and extreme tech-sector valuations. By Bloomberg · Published 6 August 2024, 19:59 SAST · Updated 6 August 2024, 19:59 SAST ## Content The S&P 500 Index rose 0.5% as of 9:49 a.m. in New York, while the technology-heavy Nasdaq 100 Index gained 0.3%. Traders remained on edge about further turbulence, with the VIX Index above 30. US Treasuries fell, with the market looking ahead to a $58 billion auction this afternoon. The moves come after the S&P 500 shed 6% over the past three sessions. The turmoil was sparked by data showing a rise in US unemployment, causing investors to worry the Federal Reserve is not moving quickly enough to cut interest rates in order to stave off a recession. Among individual stocks, Nvidia Corp. rose as much as 4.4%, while other chip stocks also gained. Palantir Technologies Inc. jumped 8.1% after the data-analysis software company [raised full-year forecasts](https://www.bloomberg.com/news/articles/2024-08-05/palantir-ups-profit-outlook-says-ai-has-transformed-business), citing demand for artificial intelligence software. Cyber security firm Crowdstrike Holdings Inc. was lifted by Piper Sandler advising clients to use beaten-down valuations to buy the shares. Uber Technologies Inc. advanced 6% after an earnings beat. A rush of Wall Street strategists have told clients not to fret over the recent pullback. Bank of America Corp.’s Savita Subramanian said pullbacks of 5% or more have occured three times per year on average since the 1930s and 10% corrections once annually, adding a “fell-fledged bear market is unlikel.” Strategists at Goldman Sachs Group Inc. said buying US stocks after a slump of the scale witnessed over the past month has [usually been profitable](https://www.bloomberg.com/news/articles/2024-08-06/goldman-says-buying-s-p-500-after-5-drop-is-usually-profitable), based on analysis of four decades of data. Since 1980, the S&P 500 Index has generated a median return of 6% in the three months that followed a 5% decline from a recent high, a team led by chief US equity strategist David Kostin said late Monday. Other market players including Jonestrading’s Mike O’Rourke downplayed the setback, telling clients in a note that “a 10% or more correction is absolutely appropriate amid such market strength.” Concerns of an abrupt downturn were somewhat allayed by numbers Monday showing the US services sector [expanded](https://www.bloomberg.com/news/articles/2024-08-05/us-services-activity-expands-at-modest-pace-as-orders-rebound)in July, after the worst contraction in four years a month earlier. Economic data releases over the coming weeks will be key to gauging the Fed’s next move and the direction of stocks. “Taking a contrarian approach around these big moves is not a bad approach for active manager and investors,” said Ben Kirby, co-head of investments at Thornburg Investment Management. Sectors to Watch - Machinery stocks outperform after Caterpillar said its annual profit will be higher than previously expected - Ride-hailing companies Uber and Lyft stocks jump after the former reported strong earnings results - Railroad operators may gain after CSX results impressed - Canadian stocks today are poised to catch up with the selloff that impacted US and global markets on Monday while the Toronto Stock Exchange was closed for a civic holiday Markets at a Glance - S&P 500 Index rose 0.5% - Dow Jones Industrial Average fell 0.1% - Nasdaq Composite Index rose 0.5% - Nasdaq 100 Index rose 0.3% - Russell 2000 Index rose 0.1% - 10-year Treasury yield rose 1.9 basis points - Cboe Volatility Index fell 6.21 points - Bloomberg Dollar Index rose 0.3% - West Texas Intermediate crude fell 0.9% to $72 a barrel - Euro fell 0.3% Here Are the Most Notable Movers - Uber shares rise 6% after the company reported better-than-expected orders in the second quarter, underscoring the continued strength in demand for rideshare and delivery services. - Lucid shares jump as much as 13% after after the EV startup announced a commitment of up to $1.5 billion from one of its biggest investors — an affiliate of Saudi Arabia’s Public Investment fund. - ZoomInfo Technologies drops 16% after the infrastructure-software company undershot earnings expectations. - Palantir Technologies’ stock jumps 8.1% after the company raised its annual outlook, citing continuing demand for its artificial intelligence software. - Caterpillar shares gain 3.2% after the heavy machinery producer reported second-quarter adjusted earnings per share that came ahead of estimates. - Celsius Holdings shares rise 5% after the energy-drink maker reported second-quarter revenue and earnings per share that topped Wall Street expectations. - Vimeo shares rise 13% after the video software company forecast revenue for the full year above the average analyst estimate and reported second-quarter revenue that beat forecasts. Notes From the Sell-Side - CrowdStrike edges higher as Piper Sandler raised the recommendation on the cyber security company to overweight from neutral, saying investors should “opportunistically build positions at current levels.” - Amazon is removed as top pick at Morgan Stanley, with the bank citing additional merchandise margin pressure and slower cost to serve improvements. Shares were slightly lower. - Alphabet fell following Monday’s ruling by a US judge that Google illegally monopolized the search market through exclusive deals. Analysts now say that Alphabet will appeal the verdict and the process will take time to resolve. - Chegg shares slide 27% after the education technology company’s forecast for third-quarter adjusted Ebitda missed consensus estimates. Piper Sandler said this was a disappointing quarter from the company. - Hims & Hers Health shares fall even after the firm boosts full-year adjusted Ebitda guidance. Citi described the performance as “impressive,” but noted that the debate on GLP-1 weight loss drugs was far from over. Related Market News - Taking Stock: Fighting the tape is never a good idea, and the intensity of the stock market selloff yesterday indicates traders have already hit the panic button. - European Stocks: European stocks fell Tuesday, suggesting any rebound from this month’s selloff remained fragile as investors worried about the outlook for US economic growth. - Inside Asia: Most Asian currencies weakened, paring some of Monday’s gains, after the dollar bounced back. The Philippine peso outperformed amid hawkish signals from the central bank.