Nasdaq Rebounds, Jumping 3% as Bond Yields Fall

The price of Google stock is displayed shortly after the company's initial public offering and trading opened mid-day, at the Nasdaq Marketsite in Times Square, in New YorkGOOGLE IPO, NEW YORK, USA.
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The Nasdaq Composite, a collection of stocks consisting mainly of big tech, rebounded on Tuesday after major sell-offs on Monday that included Tesla (TSLA) stock, which dipped to under $600. Nasdaq gained more than 3% Tuesday, with Tesla, Apple (APPL), Amazon (AMZN), Facebook (FB) and Microsoft (MSFT) all seeing gains of 2.4% to 7.2%, the New York Post reports. Gaining 399 points, Nasdaq now sits at 13,0073.71 as the market gets set to open Wednesday.

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U.S. bond yields began a retreat Tuesday, dipping to 1.54% after reaching 13-month highs of 1.613%, according to the Post. Yield rates and high-growth stocks like those in the tech sector often affect each other, as investors sell off stocks to take advantage of high-yield Treasury bonds.

“Tech stocks are overdue for some kind of bounce after the downfall they have had so far with most investor[s] maintaining a positive outlook (on them) in the medium to longer term,” said Michael Sheldon, chief investment officer of Westport, Connecticut’s RDM Financial, in the Post.

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The Dow closed Tuesday at 31,832, according to Nasdaq, but gained in overnight trading, creeping up toward record highs once again. The S&P 500, which includes Tesla, gained 1.42%, more than 54 points, Nasdaq reports. 

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About the Author

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.

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