A period of intense volatility for popular technology stocks continued Thursday, pushing the Nasdaq Composite to its best session in more than six months one day after it plunged into correction territory.
The tech-heavy index closed up 3%—its biggest one-day gain since March 26—coming off a 4.4% slide that marked its worst session since August 2011. A gain above 3.26% would have been the Nasdaq’s best day since August 2015, and the index flirted with that level late in the afternoon before falling just before the close.
The moves highlight how the U.S. stock market’s best-performing group continues to lead major indexes on their way up and down this month.
The latest move of at least 2% was the Nasdaq’s sixth of that size this month, the most since January 2016, according to Dow Jones Market Data.
Analysts said the latest batch of corporate earnings helped highflying internet and technology stocks stabilize, with
climbing 15% and Tesla surging 9.1% following the companies’ latest results.
added 5.8% after its latest earnings report, and
added at least 3.5% each.
But Amazon, Alphabet and Snap quickly slumped in after-hours trading following their most recent quarterly results, potentially setting the stage for a volatile Friday for technology stocks. Intel was among the biggest gainers after hours following its third-quarter report.
Investors have been weighing whether a period of outsize sales increases for the world’s largest technology companies can continue, pushing many of the best performers of recent years down more than 10% this month entering Thursday.
But as has been the case lately, large intraday moves in those stocks spread to other sectors, with 10 of the S&P 500’s 11 groups posting gains in late afternoon trading.
The benchmark equity index closed up 1.9% and the Dow Jones Industrial Average rose 1.6%, putting both indexes back in the green for 2018 after they erased their year-to-date gains during Wednesday’s selloff.
Write to Amrith Ramkumar at firstname.lastname@example.org