Investors can’t seem to make up their minds about whether to buy or sell tech stocks.
A day after dragging the Nasdaq Composite (COMP) into correction territory, tech stocks were on a massive rebound rally — the latest surge in the sector’s volatile start to the year. The tech-heavy Nasdaq closed 3.7% higher on Tuesday, marking its best day since November. Tesla shares were particularly hot, soaring more than 19% on improved demand from China. A near-4% jump is huge by any standard, but it’s particularly stunning after Monday’s selloff that put the index in correction territory, defined as a drop of at least 10% from its peak. The Nasdaq hit a record high on February 12, not even a month ago. So what happened? Perhaps it’s just a run on buying the dip that formed recently when tech stocks softened. The sectors been getting whipsawed as investors try to read the tea leaves and prepare for the next driver of market momentum.
