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Nasdaq jumps 2.5% to fresh record as big tech shares soar

Nasdaq jumps 2.5% to fresh record as big tech shares soar

A logo for Pfizer is displayed on a monitor on the floor at the New York Stock Exchange (NYSE) in New York, on Jul 29, 2019. (Photo: REUTERS/Brendan McDermid)

NEW YORK: The Nasdaq powered to another record on Monday (Jul 20) behind strong gains by Amazon, Microsoft and other tech giants ahead of earnings reports in the coming days.

The tech-rich Nasdaq Composite Index surged 2.5 per cent to 10,767.09.

The Dow Jones Industrial Average added less than 0.1 per cent at 26,680.87, while the broad-based S&P 500 gained 0.8 per cent to 3,251.84.

Monday's rally followed analyst upgrades of several tech giants that have been big winners from the COVID-19 upheaval as more Americans work from home.

Shares of Amazon surged 7.9 per cent after Goldman Sachs lifted its price target on the e-commerce giant, estimating North American revenues rose 48 per cent in the second quarter.

Among other large tech companies, Apple rose 2.1 per cent, Google parent Alphabet 3.3 per cent, Microsoft 4.3 per cent and Tesla 9.5 per cent.

All will report results within the next 10 days.

"Stocks that benefit the most from social distancing and the spreading virus are doing well," said Karl Haeling of LBBW.

"Investors are hedging their bets by buying stocks that don't benefit from the economic rebound as much as they benefit from a continuation of high fear surrounding coronavirus."

US stocks have proven resilient in recent weeks even as spiking coronavirus cases have forced some states to suspend or roll back efforts to reopen their economies.

The strength partly reflects unprecedented stimulus from the Federal Reserve and from Congress, where another round of stimulus legislation is expected to be debated in the coming days.

Oil services firm Halliburton jumped 2.5 per cent despite reporting a US$1.7 billion quarterly loss following a 46 per cent plunge in revenues.

Noble Energy rose 5.4 per cent as Chevron announced it would acquire the exploration and production company for US$5 billion. Chevron dropped 2.2 per cent.

Source: AFP/ec


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