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Tech rallies for a second day as dip buying continues

stocks rebound

All of the three US major indices finished higher as investors continue to buy the dips in tech shares. The Dow Jones Industrial Average was up 0.48%, the S&P 500 gained 0.92%, and the Nasdaq added 1.41%.

Markets were not surprised by Federal Reserve chair Jerome Powell's congressional testimony either, where he indicated the start of a tightening of the monetary cycle and unwinding of the balance sheet. 

Eight out of 11 sectors in the S&P 500 closed higher. Tech and energy stocks rose 1.14% and 3.29% respectively, leading the gains of the broader market. All of the big tech companies were up. Amazon rose 2.28%, while Apple and Meta gained more than 1%.

Microsoft and Alphabet gained 0.20% and 0.69% respectively. The chip makers had a strong session too. Nvidia rose near 1%, and AMD was up 3.75%. Tesla finished flat at $1,058.91.

Most of the beaten-up tech shares including Twitter, PayPal, and Snap all closed in the green, up between 3 and 4%. Airline stocks continue to rise, as Dela Airlines and the US Global Jets ETF were both up more than 1%. 

Crude oil prices jumped after the EIA forecast a $4 lift per barrel in the crude oil price estimate in 2022, when the organisation issued its short-term energy outlook for January. WTI futures price surged 4.09%, to $81. 43 per barrel, the highest since November 2021, while Brend crude oil was up 3.49%, to $83.70. 

The 10-year treasury yield cooled down to 1.74% from 1. 76 the previous day. Gold futures jumped $23.3, to $1,822 per ounce. The US dollar index fell 0.39%, to 95.612.

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