Technology industry stocks rebounded on Tuesday, just one day after a brief downturn in the sector which has dominated both headlines and portfolios so far this year. The almost immediate jump back from tech stocks also helped major Wall Street indexes pop.
The relatively uncommon, nearly industry-wide receding of many of the largest tech companies over the last two days of trading was due, in part, to Goldman Sachs' GS note to investors on Friday, which cited multiple potential unaccounted for dangers across the industry.
In the note, Goldman claimed that the famous tech acronym "FANG," is now obsolete. The financial giant chose to rename the group of industry powers to "FAAMG." These companies all closed higher on Tuesday.
Facebook FB gained 1.51%, while Amazon AMZN climbed 1.65%. Shares of Apple AAPL , Microsoft MSFT , and Alphabet GOOGL , which round out the rest of the five "FAAMG" companies, rose between 0.80% and 1.25%.
The tech giants' quick turnaround helped Wall Street indexes reach all-time highs on Tuesday . The S&P 500 rose roughly 0.5% to close at a record high. The Dow Jones Industrial Average gained 90 points, which helped it reach both intraday and closing records.
On top of Apple and the other big-time tech players moving the market, Goldman and 3M MMM also helped Wall Street swing back.
Some might see the quick market correction as just that, while others might point to investors hoping to buy the large tech dip. What does seem to be clear is the fact that the markets have demonstrated they can be hyper-resistant to large declines over the last few months.
Last month, the S&P 500 fell 1.8% in one day. According to Business Insider , the index gained 85% of that single-day loss back over the next three days of trading, which marked the second-fastest rebound from a decline of that size in S&P 500 history.
It should also be noted that today's move comes just ahead of the Federal Reserve's much-anticipated rate hike of 0.25 basis points.
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