U.S. stocks rose Wednesday as the market attempted to recover from April’s technology-led sell-off a day after the Nasdaq Composite posted a new low for the year.
The Dow Jones Industrial Average rose about 150 points, or 0.5%. The S&P 500 gained 0.5%. The Nasdaq Composite ticked up 0.7%.
“We remain cautious on rallies here,” BTIG’s Jonathan Krinsky said in a note to clients. “There still hasn’t been a full-scale washout, in our view, and trends remain to the downside. This means small rallies don’t do much other than alleviate short-term oversold conditions.”
Microsoft’s shares jumped more than 3% after the company beat analyst expectations on the top and bottom lines. The company also issued forward revenue guidance exceeding analyst forecasts.
“We’re trying to find a place of stability,” Kari Firestone, chairman and CEO of Aureus Asset Management, told CNBC’s “Squawk Box.” “We need to see a few more names come in with really strong, reliable and sustainable earnings so investors can get back on board.”
The tech-heavy Nasdaq Composite has dropped further into bear market territory, losing 3.95% on Tuesday and hitting a fresh low for the year. That was its biggest daily loss since September 2020. The index is now sitting now roughly 22% off its high. The S&P 500 on Tuesday posted its worst performance since March and closed below a key support level of 4200.
In April, the S&P 500 is down about 7%, the Nasdaq has lost about 11%, and the Dow has declined more than 3%.
“The confluence of persistent inflation, Fed tightening, the war in Ukraine, and China’s zero-Covid policy lockdowns has manifested in tenacious headwinds for investors in April,” Art Hogan, National Securities chief market strategist, said.
Meanwhile, shares of Robinhood shed about 3% on Wednesday after the retail brokerage said it is cutting back on staff. The company cited “duplicate roles and job functions” after its rapid expansion last year.
Boeing saw shares fall 5% after an earnings miss.
Facebook parent Meta is set to report earnings Wednesday after the bell, with Apple and Amazon reporting earnings Thursday. Investors will be watching to see if tech companies’ results prove the intense selling in April has been misplaced.