Stocks rebound ahead of Big Tech earnings week

Stocks rebound ahead of Big Tech earnings week

Stocks















Bloomberg

US stocks rise in a late-day turnaround as dip-buyers emerged ahead of a busy week for Big Tech earnings.

The S&P 500 rallied back in a choppy afternoon session to end near highs of the day, after falling to lows near the 4,200 level. The tech-heavy Nasdaq 100 climbed more than 1%. Twitter Inc extended gains after billionaire entrepreneur Elon Musk agreed to buy the social networking platform. Alphabet Inc., Apple Inc., Amazon.com Inc. and Meta Platforms Inc. are all due to report later this week.

The gains followed stock declines in Europe and Asia as China’s Covid outbreak continued to compound fears sparked by faster Federal Reserve tightening. Fears of wider curbs in Beijing are spooking investors already fretting about the risk of a global slowdown as the Fed raises rates to tame inflation.

“The rebound shows that stocks weren’t ready to test year-to-date lows,” John Lynch, chief investment officer at Comerica Bank, said by email. “Last week’s selloff was an overreaction to Powell’s comments.”

A broad gauge of Chinese stocks dropped to the lowest in almost two years as policy makers put some areas of the capital