US Stocks broke a four day losing streak as Nasdaq notched their biggest gain in more than four years. Contributing to such an increase was news that Apple Inc (AAPL) was in talks to offer iPhones in China, sending bargain hunters on a quest of purchase undervalued technology stock.
Retail stocks also sizzled when strong earnings were released from Wal Mart Stores (WMT) and crude oil prices significantly decreased. These factors eased worry about consumer spending close to the holiday season, an important spending season for consumers and businesses alike.
Apple (AAPL) shares jumped 10.5 percent, the most in 14 months, while Goldman Sacs (GS) surged 8.5 percent, the most in 6-1/2 years, and Wal Mart (WMT) shot up 6.1 percent, the most in five years.
“The market is extremely oversold. We like technology,” said David Levy, portfolio manager of Kenjol Capital Management. “Today you have leadership from the likes of Bank of America, Goldman and JP Morgan all saying maybe things aren’t as bad as everybody says it’s going to be.”
The DJIA increased 319.54 points, or 2.46 percent, to close at 13,307.09. The Standard & Poor’s 500 Index (.SPX) gained 41.87 points, or 2.91 percent, to end at 1,481.05. The Nasdaq Composite Index (.IXIC) shot up 89.52 points, or 3.46 percent, to finish at 2,673.65.
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