Stock Market Today: Big Tech Bounces Back
Cheaper shares had investors clamoring once again for growth stocks.


The recent rotation away from growth stocks into value names took something of a pause Wednesday as the tech-heavy Nasdaq Composite outpaced the other major indexes by a wide margin.
The Nasdaq closed up 2% at 11,786, as investors took advantage of cheaper share prices created by a period of underperformance. By comparison, the Dow Jones Industrial Average finished lower by 0.1% at 29,397, while the broader S&P 500 added just 0.8% to hit 3,572.
Over the past five days, the Russell 1000 Value index had outperformed the Russell 1000 Growth index by 8 percentage points. But for a session, at least, the rotation was reversed.
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"The underperformance of the Russell 1000 Growth vs. Value indices over the past 10 days has reached a level that suggests a temporary pause in the strong relative performance for Value," writes Canaccord Genuity equity strategist Tony Dwyer.
Wednesday's top-performing stocks included the usual suspects -- Amazon.com (AMZN, +3.4%), Apple (AAPL, +3%) and Microsoft (MSFT, +2.6%).
Other action in the stock market today:
- The Russell 2000 was up 0.1% to 1,736.
- U.S. crude oil futures gained 0.1% to close at $41.49 per barrel.
- Gold futures were off 0.7% to finish at $1,863 per ounce.
The bottom line is that it's probably an overreaction to dump your growth stocks.
After all, many of the best stocks of the pandemic should continue to outperform even after COVID-19 is gone, and many of them are growth stocks. Then there's a case to be made for promising mid-cap stocks, which offer the dual threat of both growth potential and stability.
And for a really growthy play, consider the telehealth stocks we've been evaluating. True, the nascent telehealth sector has already boomed during the pandemic, but the market for telehealth services is forecast to grow by leaps and bounds over the next five years.
Take a look at some of analysts' favorite pure-play telehealth stocks.
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Dan Burrows is Kiplinger's senior investing writer, having joined the publication full time in 2016.
A long-time financial journalist, Dan is a veteran of MarketWatch, CBS MoneyWatch, SmartMoney, InvestorPlace, DailyFinance and other tier 1 national publications. He has written for The Wall Street Journal, Bloomberg and Consumer Reports and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among many other outlets. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange.
Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.
In his current role at Kiplinger, Dan writes about markets and macroeconomics.
Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.
Disclosure: Dan does not trade individual stocks or securities. He is eternally long the U.S equity market, primarily through tax-advantaged accounts.
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