Bruised Tech Stocks Soar as Markets Rally After U.S. Election

(Bloomberg) -- Technology growth stocks at the center of last month’s sell-off were among the biggest gainers as markets rallied after the U.S. elections.

Amazon.com Inc. and Netflix Inc., which each tumbled around 20 percent in October amid surging volatility, gained more than 4 percent apiece Wednesday. Cloud-software stocks such as Splunk Inc. and Salesforce.com Inc. also jumped.

“These stocks are the leaders of this bull market,” said Jason Benowitz, senior portfolio manager at Roosevelt Investment Group Inc. in New York. “If we’re going to have a rally, they’re going to participate in it.”

Investors in popular internet and technology stocks were punished last month amid higher interest rates and disappointing earnings reports from the likes of Alphabet Inc. and Amazon. The Nasdaq 100 Stock Index lost 8.7 percent in October, its worst monthly decline in nearly 10 years. Today, the group gained as much as 2.6 percent.

Earnings results late Tuesday were mixed for tech with Tableau Software Inc. and Etsy Inc. surging on strong forecasts, while weak outlooks from companies such as Zillow Group Inc. and Mindbody Inc. sent their shares lower.

Square Inc., which sank 26 percent in October, reports third-quarter results after markets close. The stock was up 7.1 percent at noon in New York trading.

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