Tech shares rebound after three days of selling; vaccine trial put on hold


Stocks rose Wednesday morning and recovered some losses after another drop in tech names dragged the three major indices to their lowest closing level in one month on Tuesday. Shares of reopening stocks including airlines, cruise lines and travel companies fell, after a company front-running the race to develop a Covid-19 vaccine had its trial put on pause.

AMZN), Facebook (FB) and Apple (AAPL) each rose at least 1% shortly after market open, steadying after investors over the past three sessions poured out of these leaders from the past several months. Tesla (TSLA) shares rose more than 5%, after the stock slumped 21% in its worst single session decline on record earlier in the day. The S&P 500 rose more than 1%, after the index sustained a 7% loss over the course of the prior three sessions.” data-reactid=”17″Shares of Amazon (AMZN), Facebook (FB) and Apple (AAPL) each rose at least 1% shortly after market open, steadying after investors over the past three sessions poured out of these leaders from the past several months. Tesla (TSLA) shares rose more than 5%, after the stock slumped 21% in its worst single session decline on record earlier in the day. The S&P 500 rose more than 1%, after the index sustained a 7% loss over the course of the prior three sessions.

In spite of the morning bounce, some analysts warned that the rotation away from technology and “stay-at-home” stocks could continue over the next few months.

told Yahoo Finance’s The First Trade on Tuesday. “These are great companies on a long-term basis, but since they got so far ahead of themselves, I think they’ve got further to drop, and they won’t bounce back as quickly as a lot of people think they will.”” data-reactid=”23″“I think they definitely have more to go on the downside before they bounce in any kind of meaningful way,” Matt Maley, chief strategist at Miller Tabek, told Yahoo Finance’s The First Trade on Tuesday. “These are great companies on a long-term basis, but since they got so far ahead of themselves, I think they’ve got further to drop, and they won’t bounce back as quickly as a lot of people think they will.”

Even after the past several sessions’ worth of sharp declines, Amazon’s stock remained higher by 70% for the year to date, Apple’s held higher by 54%, and Facebook’s by 32%. That compares to a 3% gain for the S&P 500 over the same time period.

Other strategists echoed similar sentiments, suggesting investors should brace for volatility in the near-term especially in growth and tech names.

“We think there is more downside over next month but eventually leads to further broadening out of the bull market,” Morgan Stanley strategist Mike Wilson said in a note Tuesday. “The S&P may be range bound for the rest of year making stock picking critical.”

CL=F) dropping 7.6% to settle at their lowest level since June Tuesday afternoon. This came after Saudi Aramco slashed its October crude prices by a greater than anticipation margin, signaling its expectation for extended weakness in energy demand as individuals continue to eschew travel and other discretionary consumption during the pandemic. Crude oil prices rose more than 1.5% Wednesday morning.” data-reactid=”27″The risk-off sentiment also spilled over into other asset classes, with US crude oil prices (CL=F) dropping 7.6% to settle at their lowest level since June Tuesday afternoon. This came after Saudi Aramco slashed its October crude prices by a greater than anticipation margin, signaling its expectation for extended weakness in energy demand as individuals continue to eschew travel and other discretionary consumption during the pandemic. Crude oil prices rose more than 1.5% Wednesday morning.

AZN) and the University of Oxford was being put on hold, due to safety concerns after a suspected serious adverse reaction in a participant in the U.K. Shares of AstraZeneca sank 2%, while those of companies competing to develop a Covid-19 vaccine including Moderna (MRNA) and Novavax (NVAX) rose.” data-reactid=”28″Meanwhile, on the vaccine front, STAT News reported late Tuesday that a late-stage trial of a Covid-19 vaccine candidate being studied by AstraZeneca (AZN) and the University of Oxford was being put on hold, due to safety concerns after a suspected serious adverse reaction in a participant in the U.K. Shares of AstraZeneca sank 2%, while those of companies competing to develop a Covid-19 vaccine including Moderna (MRNA) and Novavax (NVAX) rose.

9:34 a.m. ET: Stocks open higher after three days of selling

The three major indices opened higher Wednesday morning, with the Nasdaq leading the way higher as some of the biggest decliners over the past three sessions tried to make up lost ground. The index rose 1.9%, or 205 points.

The S&P 500…



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