Shares of technology companies rallied after Federal Reserve Chairman Jerome Powell indicated that the central bank would slow rate increases.
The Nasdaq Composite soared by more than 3% to test its highest levels since September.
Investors have carefully calibrated risk-taking in the tech sector based on interpretations of Fed policy plans, and Mr. Powell’s comments were treated as a green light.
Shares of Apple surged as fears about the impact of a shutdown in a major Foxconn factory on its iPhone production faded in light of the central-bank development.
Investors dived back into a bet known as “FAANG,” snapping up shares of Apple, Facebook parent Meta Group and Netflix among other mega cap tech stocks. Such large-cap stocks have lagged smaller peers recently, reversing a long-standing bias in stock market capitalization sizes.
This rationale was “based on valuations, for some of the big boys, the good has been priced in,” said Edward Moya, senior market analyst at Oanda Group.
DoorDash is reducing its corporate staff by about 1,250, or 6% of the company, as the food-delivery platform works to rein in costs after a pandemic-fueled expansion.
Chinese Internet censors are blocking photos and video streams showing demonstrations against harsh Covid restrictions from social media.
Covid 19 factory lockdowns in China are set to impede supply chains and affect import prices, said Mr. Powell, during his comments at the Brookings Institution.
Write to Rob Curran at [email protected]
.