The technology sector rebounded Tuesday, leading stocks out of the massive sell-off of the two previous trading days. Momentum stocks surged in afternoon trading as the S&P 500 traded up 25 points, or 1.3 percent, at 1,917. Information technology led nine of the 10 sectors higher.
Here's how the so-called Fab Five tech companies -- Google Inc. (NASDAQ:GOOGL), Amazon.com Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), Netflix Inc. (NASDAQ:NFLX) and Facebook Inc. (NASDAQ:FB) -- fared Tuesday:
Netflix Inc. (NASDAQ:NFLX) was one of the biggest gainers Tuesday, rallying more than 8 percent to $107.88. The movie streaming company, which has a market value of $40.5 billion, is the best performer this year in the Nasdaq 100, an index that tracks the largest nonfinancial Nasdaq companies. Despite Monday’s losses, the stock has soared nearly 100 percent since January.
Shares of Facebook Inc. (NASDAQ:FB) also gained Tuesday, jumping 4.5 percent to $87.67. Last month, Facebook leapfrogged U.S. multinational conglomerate General Electric in July to make it the eighth most valuable company in the Standard & Poor’s 500 index. However, following Monday's losses, the Menlo Park, California, company is currently valued at around $232 billion, below General Electric Company ($240 billion), but still higher than JPMorgan Chase & Co. ($222 billion).
Shares of Apple Inc. (NASDAQ:AAPL) are on course for their best daily percentage gains since January, rising more than 6 percent to $111.11. The moves come a day after CEO Tim Cook tried to reassure shareholders of its business prospects in China. Apple shares sank as much as 13 percent to a year low of $92 in morning trading a day earlier amid Monday’s global market sell-off.
Shares of Google Inc. (NASDAQ:GOOGL) also bounced back, adding 3.5 percent to $647. Google surprised investors this month, announcing it plans to restructure under a holding company called Alphabet Inc. The move has been viewed largely as a positive on Wall Street. The company posted strong second-quarter earnings in July driven by advertising revenue.
Amazon.com Inc. (NASDAQ:AMZN) added 4 percent to $489.44. The e-commerce giant posted a rare and surprising quarterly profit recently. Sales soared 20 percent from a year ago, driven by strength in North America, its largest market. Amazon has a long history of lacking profitability, but investors continue to back the company as it sacrifices profits for rapid sales growth.