MW: Nasdaq turns a 3.5% loss into 3.3% gain as stock market stages epic turnaround

24/02/2022

MARKETWATCH reports:

U.S. stock-market investors shook off an unprovoked Russian invasion of Ukraine to end decidedly in positive territory on Thursday.

The Nasdaq Composite Index COMP, +3.34%, for example, had fallen by 3.45% at its lows of the session but clawed back to a gain of over 3%, driven higher by large-capitalization information technology stocks and notable gains in the cybersecurity sector.

The last time the tech-heavy index staged a comeback of this magnitude was Jan. 24, 2022 when it fell 4.90% at its low, but closed up 0.63%, according to Dow Jones Market Data.

In fact, there have only been eight trading sessions in which the Nasdaq Composite was down at least 3% on an intraday basis, but ended the day higher (not including today).

The Nasdaq Composite’s turnaround also reflect a broader reversal from a very bearish tone for markets for the S&P 500 SPX, +1.50% and the Dow Jones Industrial Average DJIA, +0.28%, even if the index finished once again on the brink of correction territory. The Dow industrials were down 859.12 points at Thursday’s nadir, or 2.6%, and the S&P was down 2.55% at its lows.

Investors scooped up shares in the tech sector SP500.45, +3.47% and communication services SP500.50, +3.13%, both up by around 2.8%, at last check. Gains there contributed to the bounce back, which also saw yields for the 10-year Treasury note TMUBMUSD10Y, 1.971% rise to 1.969, after hitting a low around 1.85%.

…so why the turnaround?