Dow futures jump more than 100 points as Wall Street tries to recover after tech struggles

Stocks rose on Monday as a slew of corporate dealmaking activity and optimism toward a coronavirus vaccine sparked a broad market rally. 

The Dow Jones Industrial Average gained 327.69 points, or 1.2%, to 27,993.33. The S&P 500 climbed 1.3%, or 42.57 points, to 3,383.54 and the Nasdaq Composite jumped 1.9%, or 203.11 points, to 11,056.65. The tech-heavy benchmark was coming off its worst week since March. 

Shares of Apple jumped 3%. The market has been following in the footsteps of its rally leader. Apple shares are still down 10.6% this month.

Tesla shares rebounded 12.6%. The once-surging stock is down more than 15% in September after it failed to gain entry into the benchmark S&P 500, something investors were anticipating.

Tech sentiment was lifted by news of Nvidia buying chipmaker Arm Holdings from SoftBank for $40 billion. Nvidia will finance the deal through a combination of cash and common stock. Nvidia popped 5.8%. Other chipmakers also gained, including AMD, Micron and Skyworks.

Meanwhile, ByteDance rejected Microsoft’s bid to buy TikTok’s U.S. operations. Instead, ByteDance has chosen Oracle to be TikTok’s U.S. technology partner, and Oracle will take a significant stake in the business. Oracle shares were up 4.3%.

Outside of tech, Gilead said it will acquire Immunomedics to expand its cancer treatments for $21 billion. Immunomedics shares doubled. The iShares Nasdaq Biotechnology ETF climbed more than 5%.

Sentiment was also boosted by signs of progress toward a coronavirus vaccine. AstraZeneca resumed phase three trials for its coronavirus vaccine in the U.K. following a halt due to safety concerns. However, its trials in the U.S. remains on hold as American regulators investigate the side effects flagged in the U.K. study, Reuters reported Monday. 

Meanwhile, Pfizer‘s CEO Albert Bourla said on Sunday that a coronavirus vaccine could be distributed in the U.S. before the year-end.


Read More Here...

Bookmark the permalink.

Comments are closed.