The global Covid-19 pandemic, Tech bubble concerns, antitrust hearings in Congress, the weak weekly jobless claims, and the unprecedented -32.9 GDP contraction for the second quarter basically had no impact on the Big Tech stocks. After the market closed, APPL, AMZN, GOOGL, and FB reported second-quarter earnings that met or exceeded expectations. The four big Techs when combined now account for nearly $5 trillion in market capitalization. All four stocks rose sharply higher in after-hours trading following the release of their earnings report.
Nasdaq 100 Index (NDX) declined 755.32 points or -6.82%, Nasdaq Composite Index (COMPQ) corrected 5.93%, and S&P Technology sector (XLK) drop -6.26% during July 2020. So, is the big Tech correction that started approximately two weeks ago over? And most importantly, will the March 2020 stock market rally resume as it takes it cue from the recent actions of the big Techs?
Attached below are charts of NDX, COMPQ, XLK, and the Tech Titans. The recent consolidations may have alleviated the near-term overbought conditions setting the stage for the next sustainable rally into the end of the summer and into early fall.