(For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window)
* Tech-related stocks lead gains on the Dow
* Tesla climbs after biggest one-day drop
* Tiffany drops as LVMH abandons its $16 bln takeover
* Dow up 2.3%, S&P 500 up 2.48%, Nasdaq up 2.89% (Updates to midafternoon, changes byline)
By Chuck Mikolajczak
NEW YORK, Sept 9 (Reuters) - Wall Street's main indexes rallied on Wednesday to stanch the bleeding after a three-day drop as investors jumped back in to take advantage of the repricing in technology-related stocks, a day after the Nasdaq confirmed correction territory.
Tesla Inc TSLA.O shares jumped 7.7% after suffering their biggest one-day percentage drop in the prior session, while Apple Inc AAPL.O , Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O - the top three U.S. public companies by market capitalization - each rose by at least 4%.
Other stay-at-home winners such as Facebook Inc FB.O and Google-parent Alphabet Inc GOOGL.O also climbed, a day after the tech-heavy Nasdaq ended 10% below its Sept. 2 record closing high, commonly known as a correction.
"Call off the five-alarm fire, it's not here," said Peter Kenny, founder, Kenny's Commentary LLC and Strategic Board Solutions LLC in Denver.
"It is very important to realize those mega-cap names have pulled the market higher and higher, so far out of range as of last week that the market did have to come back in to some sort of reversion to the mean."
Kenny said the Nasdaq's ability to hold its 50-day moving average, a technical support level, was key in reversing the market's direction.
In late afternoon trading, the Dow Jones Industrial Average .DJI was up 631.27 points, or 2.3%, at 28,132.16, the S&P 500 .SPX gained 82.5 points, or 2.48%, to 3,414.34 and the Nasdaq Composite .IXIC added 313.46 points, or 2.89%, to 11,161.15.
U.S. stocks have become susceptible to volatility as market leadership has narrowed during the year to a handful of heavyweight tech-related stocks as traders bid up their shares in a rally that triggered a Nasdaq-led rebound for Wall Street from its pandemic lows in March.
The recent pullback has also been driven by worries that sellers of call options would unwind massive amounts of stocks they bought as hedges during the rally.
Media reports last week said SoftBank Group Corp 9984.T has made big bets on equity derivatives tied to tech firms.
In a sign of growing unease about the positioning in tech stocks, skew, a measure of demand for protective put options in relation to call options, has risen sharply. volatility is expected to further increase in the run-up to the U.S. presidential election, with September and October also historically turbulent months of the year.
Market participants were watching for signs of a widening in market breadth, supported by improving economic data.
AstraZeneca Plc AZN.L could resume trials for its experimental coronavirus vaccine next week, the Financial Times reported, after the British drugmaker paused global trials of its experimental COVID-19 vaccine. Still, its U.S.-listed shares fell 1.5%. & Co TIF.N tumbled 6.2% after French luxury goods giant LVMH LVMH.PA warned it was set to walk away from its planned $16 billion takeover of the U.S. jeweler. issues outnumbered declining ones on the NYSE by a 3.24-to-1 ratio; on Nasdaq, a 2.19-to-1 ratio favored advancers.
The S&P 500 posted 2 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 30 new highs and 20 new lows.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ The taller they grow ... The taller they grow ...
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.