Wall Street Opens Higher Lifted by Tech IPO Buzz; Dow up 125 Pts By Investing.com


© Reuters.

By Geoffrey Smith 

Investing.com — U.S. stock markets opened higher again on Tuesday, as faith in the growth narrative underpinning the rally in tech stocks withstood the pressure of its first serious correction in months. 

That faith was expressed in strong demand for two software IPOs which are due to price later Tuesday, those of Snowflake and JFrog. Both raised their marketing ranges on Monday and Snowflake is now set to come to market with a valuation of some $30 billion. 

By 9:40 AM ET (1340 GMT), the was up 126 points, or 0.5%, at 28,119 points. The was up 0.9% and the was back to its habit of outperforming, with a rise of 1.5%.

The army of retail investors that has driven this summer’s rally appeared to have seen last week’s sell-off as little more than a dip to be bought, especially through the options market. Goldman Sachs (NYSE:) analysts pointed out that the open interest in single stock call options was now equal to that in index put options, something unprecedented in at least the last 10 years. 

The fresh pile-on in tech megacaps added 4.9% to Tesla (NASDAQ:) stock, 2.3% to Apple (NASDAQ:) stock and 1.8% to Amazon (NASDAQ:) stock, with little or no news flow behind any of the moves. Amazon, at least, remained well supported by reports on Monday of it hiring another 100,000 workers across North America.

 

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