Dow up more than 600 points as stocks surge on heavy tech buying

U.S. stocks booked sharp gains Wednesday, snapping a three-day selloff that a day earlier drove the Nasdaq Composite into a correction at the fastest pace in history, following its record high last week.

On Wednesday the Nasdaq posted its largest one day point and percentage gain since Wednesday, April 29, according to Dow Jones Market Data.

How did major benchmarks fare?

The Dow Jones Industrial Average DJIA, -1.45%  rose 439.58 points, or 1.6%, to end at 27,940.47, while the S&P 500 SPX, -1.75% closed at 3,398.96, an increase of 67.12 points, or 2%. The Nasdaq Composite COMP, -1.99% jumped 293.87 points, 2.7%, to finish at 11,141.56, while booking its best daily percent gain since April 29, according to Dow Jones Market Data.

The Nasdaq Composite on Tuesday ended with a loss of 465.44 points, or 4.1%, at 10,847.69—marking a pullback of slightly more than 10% over three trading sessions for its fastest ever fall from a record into correction territory. The Dow fell 632.42 points, or 2.3%, ending at 27,500.89, while the S&P 500 dropped 95.12 points, or 2.8%, to close at 3,331.84.

What drove the market?

Technology, and stocks that benefited from the work-from-home trend in recent months, recovered some ground Wednesday.

“Broadly, the technology sector is leading the recovery,” said James Ragan, director of Wealth Management Research at D.A. Davidson, in an interview with MarketWatch, adding that early signs of a rotation into downtrodden stocks has fizzled.

“We could say that today, any rotation has stalled out,” he said. “Over the past few months, any time we get a little more strong performance from value groups, it doesn’t really last.”

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