Tech stocks lead rebound as investors show renewed optimism around economic recovery

Pimco at NYSE in 2018
Pimco at NYSE in 2018

  • US stocks rebounded Wednesday morning after a sharp-sell off the previous day, with the tech-heavy Nasdaq leading the rally.
  • Fed Chair Powell told Congress the US is recovering faster than expected out of the pandemic.
  • Oil prices spiked following a major ship blockage in the crucial Suez Canal.
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US stocks rallied at the open Wednesday after a sharp sell-off the previous day as traders showed renewed optimism around the economic recovery. The tech-heavy Nasdaq lead the charge with investors piling into rate-sensitive technology stocks as bond yields stabilized.

Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen appear before the Senate at 10:00 a.m today for a second day of hearings. On Tuesday, Powell said the US economic recovery has progressed faster than expected, but it’s far from complete and the Fed will provide support for as long as it takes to get to full recovery.

Meanwhile, oil prices bounced after their recent slide, with a major ship blockage of the Suez canal potentially delaying supply.

Here’s where US indexes stood after the 9:30 a.m. ET open on Wednesday:

Bitcoin rose 5% to above $57,000 after Elon Musk said Tesla cars can now be purchased using the world’s most popular cryptocurrency.

Oil prices rose. West Texas Intermediate crude rose 3.4%, to $59.70 per barrel. Brent crude, oil’s international benchmark, gained 3%, to $62.67 per barrel.

Gold jumped 0.4%, to $1,731.60 per ounce.