Wall Street ends sharply higher as Big Tech roars back

Reuters

Wall Street ended sharply higher on Tuesday, as Microsoft and Apple spearheaded a strong rebound in growth stocks and investors awaited monthly payrolls data later this week that could influence the U.S. Federal Reserve’s decision on when to scale back monetary stimulus.

Apple (AAPL.O), Microsoft (MSFT.O), Amazon (AMZN.O) and Alphabet (GOOGL.O), Wall Street’s most valuable companies, each rose following a selloff in growth stocks the day before.

Facebook Inc (FB.O) rebounded a day after taking a beating when its app and its photo-sharing platform Instagram went offline for hours.

Almost all of the 11 major S&P 500 sector indexes rose, with financials (.SPSY), communication services (.SPLRC) and technology (.SPLRCT)among the top performers.

The S&P 500 logged its fourth straight day of 1% moves in either direction. The last time the index saw that much volatility was in November 2020, when it rose or fell 1% or more for seven straight sessions.

“We’re buying the dip, but the dip isn’t 10% anymore. The dip is now 2%, or 4%,” said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. “People are trained like Pavlov’s dog to buy the dip, which is reinforcing all of this.”