Only two short weeks after Facebook’s (FB 189,02 -3,71 -1,93%) less than stellar second-quarter earnings report which caused its stock to drop 19% in one day while also dragging down other major tech stocks with it, tech stocks are back on top and enjoying their strong run, with the Nasdaq up every single day in August thus far.
Since the beginning of August, Facebook shares have rallied more than 8%, as the other FAANG stocks have also been performing extremely well. Apple (AAPL 204,02 -4,41 -2,12%) is up over 9% in August, while Amazon (AMZN 1.823,24 -32,08 -1,73%) is up 6%, Alphabet Inc (GOOGL 1.184,50 +13,70 +1,17%) and Netlfix (NFLX 308,93 -6,97 -2,21%) are both up 3%. The turnaround was aided by Apple’s strong report on July 31st, and becoming the first trillion dollar company in the US stock market didn’t hurt the FAANG’s much either.
So far this month Nasdaq is up roughly 2.3%.
While the Dow and the S&P 500 had small changes, the Nasdaq sits firmly higher, propped up by its tech trio of Apple, Amazon and Microsoft.
The S&P tech sector was up 0.2% and tech stocks have been at the root of a sharp recovery in the S&P since a market rout in February, driving the index close to its record high.
Shares of Apple rose 1% while Amazon was up 0.5% and Microsoft 0.3%.
“The S&P has been climbing gradually amid geopolitical and trade concerns,” said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, NJ.
“Investor mindset has been predicated on a strong economy and a longer-term perspective, and that has been playing out very nicely.”
The S&P index recorded 20 new 52-week highs and one new low, while the Nasdaq recorded 44 new highs and 24 new lows.