Technology Stocks Rebound After Four-Day Retreat

A rebound in technology stocks helped drive the NASDAQ Composite and the S&P 500 Index higher on Monday, snapping four-day losing streaks. The technology sector was hit particularly hard last week as investors expressed concerns over the possibility of stronger regulation for social media companies by dumping shares of Facebook and Twitter. The weakness even spread to NASDAQ giants Amazon and Apple.

In the cash market on Monday, the benchmark S&P 500 Index settled at 2877.13, up 5.45 or +0.19%. The blue chip Dow Jones Industrial Average closed at 25857.07, down 59.47 or -0.23% and the technology-driven NASDAQ Composite finished at 7926.98, up 24.44 or +0.31%.

The gains and losses were spread widely throughout the session. As far as the major indexes were concerned, the S&P 500 was supported by gains in the utility, industrial and technology sectors. The Dow Industrials were boosted by Transports, which hit an all-time high.

Individual shares were mixed. Facebook shares rose 0.7 percent and Microsoft gained 1 percent. Semiconductor stocks rose, cutting losses from last week. The VanEck Vectors Semiconductor ETF (SMH) dropped 2.9 percent last week. The fund rose 1 percent on Monday, led by a 9.2 percent gain in Advanced Micro Devices and a 3.5 percent jump in Broadcom.

Amazon and Apple shares lost ground on Monday. Amazon was down 0.7 percent, posting its first four-day losing streak since December 2017. Apple dropped 1.3 percent after President Donald Trump pressured the company to make its products in the U.S.

Tesla Shares Rebound

In other stock market related news, Tesla shares jumped 8.5 percent after an analyst at Baird said investors should buy them “even with drama.” The analyst cited the potential of Tesla’s “Gigafactory” to give the company a competitive advantage long-term.

Also, the Justice Department said last week Attorney General Jeff Sessions will meet with state attorneys general later in September to discuss worries surrounding tech companies that “may be hurting competition and intentionally stifling the free exchange of ideas on their platforms.”

Global Trade Issues Persist

Global trade worries remain an issue. Canada and the U.S. have yet to secure a final deal that would replace the North American Free Trade Agreement (NAFTA). Trump told reports last week the U.S. and Japan had begun talks over trade. Trump also said he was “ready to go” on hitting China with an additional $267 billion worth of tariffs.