Retail investors buying on the dip emerged after the recent selloff in some of the world’s largest tech companies, with the Nasdaq 100 extending its rally into a third day, led by Apple.
Buying from retail investors has averaged $1.2 billion a day this week, according data from Vanda Research. Those purchases have exceeded the daily average for 2021 of $1.05 billion. The largest tech firms and exchange-traded funds with big positions on the industry have accounted for much of the buying, analysts Ben Onatibia and Giacomo Pierantoni, wrote. For Garrett Melson, strategist at Natixis, tech companies remain attractive and are poised demonstrate their earnings power.
“People continue to underestimate just how strong their growth has been,” Melson said. “Tech is the secular growth engine for the market and that will continue to be the case over the long term.”
After Monday’s rout, the five largest U.S. tech companies had lost nearly $900 billion in market value from the Nasdaq 100’s peak on Sept. 7 as higher Treasury yields put pressure on growth stocks. The gauge then rebounded, climbing almost 3% in three days. The NYSE FANG+ Index of giants such as Amazon.com Inc. and Apple Inc. surged as much as 2.8% on Thursday.
MacDailyNews Note: Tech investors helped Apple rise $1.29 (+0.91%) today to close at $143.29, short of its all-time high of $157.26 set during trading on September 7, 2021.
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!