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* Tech-related stocks lead gains on the Dow
* Tesla climbs after biggest one-day drop
* Tiffany falls as LVMH abandons its $16 bln takeover
* Dow up 1.6%, S&P 500 up 2.01%, Nasdaq up 2.71%
(Adds closing prices, market details)
By Chuck Mikolajczak
NEW YORK, Sept 9 (Reuters) - Wall Street's main indexes
ended higher on Wednesday to snap a three-session losing skid as
investors jumped back in to take advantage of the pullback in
technology-related stocks, a day after the Nasdaq confirmed
correction territory.
Tesla Inc TSLA.O shares rebounded 10.92% after suffering
their biggest one-day percentage drop in the prior session,
while Apple Inc AAPL.O , Microsoft Corp MSFT.O and Amazon.com
Inc AMZN.O - the top three U.S. public companies by market
capitalization - each rose by at least 3%.
Other stay-at-home winners such as Facebook Inc FB.O and
Google-parent Alphabet Inc GOOGL.O also climbed, a day after
the tech-heavy Nasdaq ended 10% below its Sept. 2 record closing
high, commonly known as a correction. The S&P tech sector
.SPLRCT notched its biggest one-day percentage gain since
April 29.
"It's certainly a massive, surprising rebound," said Jack
Ablin, chief investment officer at Cresset Capital Management in
Chicago.
"On one level it looks speculative but on another it is
almost defensive because we know these companies will survive no
matter what COVID throws at us."
Analysts also said the Nasdaq's ability to hold its 50-day
moving average, a technical support level, was key in reversing
the market's direction.
The Dow Jones Industrial Average .DJI rose 439.58 points,
or 1.6%, to close at 27,940.47, the S&P 500 .SPX gained 67.12
points, or 2.01%, to 3,398.96 and the Nasdaq Composite .IXIC
added 293.87 points, or 2.71%, to 11,141.56.
The percentage gains marked the best one-day performance for
the S&P since June 5, the Nasdaq since April 29 and the Dow
since July 14.
U.S. stocks have become susceptible to volatility as market
leadership has narrowed during the year to a handful of
heavyweight tech-related stocks as traders bid up their shares
in a rally that triggered a Nasdaq-led rebound for Wall Street
from its pandemic lows in March.
The recent pullback has also been driven by worries that
sellers of call options would unwind massive amounts of stocks
they bought as hedges during the rally.
Media reports last week said SoftBank Group Corp 9984.T
has made big bets on equity derivatives tied to tech firms.
In a sign of growing unease about the positioning in tech
stocks, skew, a measure of demand for protective put options in
relation to call options, has risen sharply. Market volatility is expected to further increase in the
run-up to the U.S. presidential election, with September and
October also historically turbulent months of the year.
In a reversal from the prior three sessions, growth stocks
.IGX jumped 2.59% to outperform the 1.13% climb in value
stocks .IVX .
Market participants were watching for signs of a widening in
market breadth, supported by improving economic data.
AstraZeneca Plc AZN.L could resume trials for its
experimental coronavirus vaccine next week, the Financial Times
reported, after the British drugmaker paused global trials of
its experimental COVID-19 vaccine. Still, its U.S.-listed shares
fell 1.96%. Tiffany & Co TIF.N tumbled 6.44% after French luxury goods
giant LVMH LVMH.PA warned it was set to walk away from its
planned $16 billion takeover of the U.S. jeweler. Advancing issues outnumbered declining ones on the NYSE by a
2.98-to-1 ratio; on Nasdaq, a 2.27-to-1 ratio favored advancers.
The S&P 500 posted 3 new 52-week highs and 2 new lows; the
Nasdaq Composite recorded 31 new highs and 25 new lows.
About 8.91 billion shares changed hands in U.S. exchanges,
compared with the 9.21 billion daily average over the last 20
sessions.
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