Market indexes rise
Major technology companies including FAANG (Facebook, Apple, Amazon, Netflix, and Google) stocks jumped on Wednesday, pushing up the market indexes after a series of declines last week on concerns over economic slowdown, Fed rate hikes, and the US-China trade war. Last week, the key US indexes including the S&P 500 Index, the NASDAQ Composite Index (QQQ), and the Dow Jones Industrial Average fell 7.1%, 8.4%, and 6.9%, respectively, and made jittery investors cautious of another recession. However, the market regained strength on Wednesday after a rough run last week.
The Nasdaq Composite popped more than 5.8%, while the Dow Jones Industrial Average and the S&P 500 both soared ~5% on December 26 after positive comments from US President Trump on the stock markets. Some fund managers are also buying the stocks, as they see an excellent buying opportunity after the crash.
During an interview on December 25, Trump said, “We have companies—the greatest in the world, and they’re doing well.” In addition to Trump, David Tepper also foresees a strong buying opportunity after the stock market crash last week. Strategist Jim Paulsen also stated on December 24 that the markets could recover sharply and push the S&P 500 Index to new highs in the first half of 2019.
FAANG stocks soar
Each of the so-called FAANG stocks including Facebook (FB), Amazon (AMZN), Apple, Netflix (NFLX), and Google, a unit of Alphabet (GOOG), grew at least 6% on Wednesday after declining for multiple days. While Amazon, Apple, Netflix, and Alphabet each dropped for the last four days, Facebook stock posted a decline in the two days before the rally.
In the upcoming articles, we’ll discuss the stock price movement of some of the FAANG stocks.