Technology stocks jumped Monday, scratching back after nearly two months of losses. Nvidia and Alphabet led gains.
The five FAANG stocks – Facebook, Amazon, Apple, Netflix and Google-parent Alphabet – all closed up more than 1 percent in trading. Nvidia also climbed 5.6 percent, after Credit Suisse gave the chipmaker an outperform rating.
Credit Suisse said Nvidia's stock getting slashed nearly in half over the last eight weeks provides "an extremely compelling entry point." The latest earnings report "was disappointing," the firm said, and Nvidia "will like take time" to turn around. Nvidia "could be significant underestimating the opportunity" from new markets.
Investors fled equities last week, with the widely held and tech heavy Invesco QQQ seeing more than $1 billion in outflows, according to Jefferies. Nearly half of the QQQ outflows were in technology shares, not including other technology-related names like Amazon. The QQQ jumped 2 percent Monday morning.
Overall, tech stocks have taken a beating since the beginning of October. The FAANG stocks fell into a bear market last week, each declining more than 20 percent from recent highs. Since their respective 52-week highs, the FAANG stocks had also lost more than $1 trillion in market value by Tuesday.