S&P 500 Rebounds As Tech Stocks Rally

Stocks Rise Following Yesterday's Sell

As tech companies resumed upward momentum, the S&P 500 rallied in the direction of the barrier at 3860. The NASDAQ Composite, which is heavily weighted toward technology, increased 2.6% today.

Tax-loss selling most certainly caused yesterday's decline. Because deals take longer to settle, December 28 was the last day for tax-loss harvesting. Speculative traders took advantage of the fact that tax-loss sellers were not present today to drive stock prices upward.

The Initial Jobless Claims data, which matched analyst expectations, may have given markets further boost.

The recovery today is widespread, and all market categories are heading upward. Tech companies, which are making gains as Treasury rates retreat from recent highs, are driving the recovery.

Tesla, which was able to escape its annual lows, is among the notable gainers. The price of Tesla shares has increased by more than 5% so far today. Ford and General Motors were able to develop significant upward momentum as well.

Interestingly, despite declines in the oil and natural gas markets, energy equities are also rising. The market is in a positive mindset, and traders are eager to purchase equities across all industries. It should be mentioned that the trading volume is low since many traders have departed for holiday.

Traders who are more long-term oriented should not pay too much attention to market movements in the last weeks of the year.