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Strong earnings from tech-driven stocks led Nasdaq and S&P 500 to close at an all-time high on Tuesday. It is a definite optimistic start to September, for Nasdaq, in particular, showing a powerful upward momentum led by companies like Apple and Zoom. These substantial gains from tech companies, retailers, and central bank offset decline originating from different market sources, including health care.
S&P 500 finished at 0.8% up preceding a five-month gain streak and best August since the year 1986. They gained 26.34 points to 3,526.65 while Nasdaq surged to 164.21 points to 11,939.67 or 1.4%. It is a welcome sign of recovery, especially for investors, as the current pandemic’s uncertainty impacts both companies and consumers.
However, it is as expected as millions of people rely on technology, devices, and online services to work from home, online classes, and general communication. The current circumstances encouraged traders to favor technology stocks.
On the first day of September, Apple’s shares neared 4% after reports of the upcoming launch of four new 5g iPhone models are to launch next month. It is 82% higher for them this year. The report also cited that Apple expects a massive demand and call for suppliers to produce 75 to 80 million new phones.
One of the leading video conferencing companies, Zoom Video Communications, soared 40.8%. It only comes after the company reported just another quarter of enormous growth. They gained earnings valued at 92 cents per share on top of $663.5 million in revenue. Zoom’s yearly revenue has quadrupled, thus raising its previous earnings guidance for the 2021 fiscal year.
Among the biggest gainers from the S&P 500 kick-starting, this month is the retail giant, Walmart, whose stocks rose to 6.3%. It reflects on investors’ positive feedback following the company’s announcement of their launch for Walmart+ in mid-September. The new subscription services offer same-day delivery, discounts on fuel, and bonuses to their members for only $98 a year.
Meanwhile, the electric car company, Tesla, shares dropped 4.67% lower after the company declared its decision to sell as much as $5 billion in stock. Though, it barely affects their share’s value as the electric car maker earned a close to 500% gain this year. Their announcement for the share sale program only comes after a day of their 5-for-1 stock split. Last Monday, the company earned a 12.6% spike once the stock split has taken effect.