Shares of technology companies rose sharply as traders rotated into the sector, betting mega cap tech stocks would continue to lead the stock market in 2022.
"In our view, conditions for a large selloff are not in place right now given already low investor positioning, record buybacks, limited systematic amplifiers, and positive January seasonals," said strategists at brokerage JPMorgan, in a note to clients.
Activist investor Starboard Value purchased a roughly 6.5% stake in Web domain registrar GoDaddy for around $800 million, sparking a rally in the company's shares.
Shares of electric car maker Tesla rose by almost 3% to their highest level since November. Elon Musk's recent stock sales and a "risk-off" sector rotation sparked by Omicron fears earlier in December had weighed on the company's shares.
Now Tesla looks set to finish the year with a 50% gain and a $1.1 trillion market value.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
12-27-21 1630ET
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