The stock market bounced back from the prior day’s sell-off, but recovered only a portion of those losses.
The Nasdaq led with a 0.7% increase Thursday, still a minor piece of Wednesday’s 2.6% collapse. The S&P 500 rose 0.4% and ended just below the 50-day moving average, which has become a point of contention.
The Dow Jones industrial average lagged with a 0.3% gain as Dow component Cisco Systems (CSCO) tumbled 7% after earnings late Wednesday. The small-cap Russell 2000 picked up 0.5%. Volume rose on the NYSE but fell on the Nasdaq, according to early readings.
Biotech, semiconductor, transportation and some other medical industry groups were among the leaders in today’s trading. About two-thirds of IBD’s 197 industry groups rose on the day.
Many top-rated stocks rebounded, at least in part, from Wednesday’s rout. In particular, some of the Chinese stocks that have been hot in May mounted impressive gains.
California-based online-ad agency Trade Desk (TTD) wiped away the bulk of an 8.5% loss from Wednesday.
Among the stocks down in unusually heavy volume, a trouble spot emerged: Several Latin American stocks took heavy blows. Brazil’s Bovespa index plummeted 9% after reports that a corruption investigation has touched President Michel Temer.
Azul (AZUL), a Brazil-based airline that went public little more than a month ago, plunged 18% to close at 20.55. At session lows, it was below its IPO price of 20 a share.
Copa Holdings (CPA), the Panama-based airline, skidded below the 50-day moving average in heavy volume, producing a sell signal.