Tech stocks rise, but energy sags
American stocks kept entering and leaving positive territory on Tuesday, being driven by a bounce in the materials as well as tech sectors amid an ongoing global equity sell-off powered by fears of economic downtime.
All three key benchmarks started in negative territory, then turned positive, though later they resumed struggling. The S&P 500 lost one point 1,852. Then, the Dow Jones Industrial Average was deprived of 40 points at 15,991. The Nasdaq Composite acquired 18 points, hitting 4,301.
As oil prices dropped in and out of positive territory, the energy sector appeared to be the S&P’s second-worst financial instrument, losing 1.4%. Additionally, the telecommunications sector also gave a solid reason for disappointment.
Nevertheless, a rally in the tech sector, that took place on Monday, really helped to raise the major indexes, especially the tech-heavy Nasdaq. Apart from that, the recent tech sell-off gave power to the so-called FANG stocks, including Amazon, Facebook, Google, Alphabet, and Netflix. On Tuesday, Facebook grew 2%, Amazon acquired 1%, Netflix surged 4.2%, while Alphabet soared 1.7%.
Pressure on crude oil prices as well as ongoing worries regarding a global economic slowdown can be blamed for a stock sell-off, which hit global markets earlier.