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Tech stock bounce part of ‘seasonal pattern’, investors pin hopes on January
Fed tapering could lead to a rebound in tech stocks: Kyle Wool
Revere Securities non-executive chairman Kyle Wool discusses whether the Fed will continue to aggressively hike rates at December’s FOMC meeting on ‘Varney & Co.’
The Nasdaq Composite is up over 2.5% Thursday in afternoon trading as technology stocks including Facebook parent Meta Platforms, iPhone maker Apple, and Windows maker Microsoft post gains on low volume trading and an improving economic outlook.
In an interview with FOX Business, David Russell, VP of market intelligence at TradeStation, said, "Sentiment has remained negative all quarter, but investors are looking for a little year-end cheer today."
"History favors Santa Rallies, especially when volumes are light and there's no major news to trigger selloffs," he continued. "Many of the big growth stocks have erased most, or all of their pandemic gains as investors begin bottom-fishing and looking for laggards to bounce in January, which is another common seasonal pattern."