NEW YORK (Pakistan Point News / Sputnik - 19th October, 2021) Big Tech extended its winning streak on Wall Street for a four straight day on Monday, boosted by expectations that the sector will post upbeat third-quarter earnings.
The tech-heavy Nasdaq Composite index rose almost 1% on the day, bringing to almost 4% its gains over a four-day period. The rally came as consumer tech giant Apple unveiled a new line of accessory products on Monday while video streaming service Netflix and electric-car maker Tesla were set to report earnings later in the week.
The S&P 500 index, which groups the top 500 US stocks, also rose on the day. But the broad-based Dow Jones Industrial Average dipped as data showed US industrial production fell 1.3% in September, slowing for a second month in a row, due to a crunch in the supply of microchips that disrupted automobile output.
"It was a good day to be a mega-cap tech stock as microsoft rose to fresh record highs, Netflix rallied ahead of earnings and Apple's event on AirPods, MacBooks and new music plan were positively received," Ed Moya, analyst at online trading platform OANDA, said.
US stocks had their worst month in September since March 2020 as surging inflationary pressure from high prices of oil and other commodities combined with fears about the Federal Reserve's plans to roll back its stimulus for the economy. The price pressures and the Federal Reserve stimulus taper are still on but investors have absorbed them better since the start of October, handing stocks their biggest win last week since June.
In Monday's trade, Nasdaq, comprising Big Tech Names such as Facebook, Amazon, Apple, Netflix and Google, closed at 15,022, up 125 points, or 0.85%. Last week, Nasdaq rose 2.2% for its biggest advance since the week to July 16.
The S&P 500 settled at 4,487, up 15 points, or 0.3%. The blue-chip indicator rose 1.8% last week, its most since the week ended June 18.
The Dow finished Monday's session at 35,259, down 36 points, or 0.1%. The index, comprising mostly industrial-based value stocks, rose 1.6% last week for its biggest gain since the week ended June 18.