April 27, 2022: -On Monday, the Dow Jones Industrial Average cut a nearly 500-point intraday loss as technology names such as Microsoft rallied amid falling interest rates.

The blue-chip average increased 238.06 points, or 0.7%, to 34,049.46. The index was down nearly 488 points. The S&P 500 ticked up 0.6% to 4,296.12. The tech-heavy Nasdaq Composite made 1.3% at 13,004.85.

Concerns regarding a global economic slowdown between Covid outbreaks in China decreased interest rates. The 10-year Treasury yield back to the 2.8% level.

Tech shares rebounded as rates decreased, supporting the major averages. Microsoft increased 2.4%, the biggest gainer on the Dow. Google-parent Alphabet gained almost 2.9%, and Facebook-parent Meta added nearly 1.6% ahead of quarterly earnings reports.

Twitter surged roughly 5.7% after the social media company announced it accepted billionaire Elon Musk’s buyout deal valued at nearly $44 billion.

“We have a focus on mega tech stocks this week. It’s so beat up, oversold, so you see money come in and get redeployed. There’s an opportunity,” said Jeff Kilburg, chief investment officer and portfolio manager of Sanctuary Wealth.

Stocks bounced after the Nasdaq Composite came down into a bear market last week. The Nasdaq is down 19.8% from its record, while the S&P 500 is back in correction territory, down 10.8% from its high. On Friday, the Dow is coming off its worst one-day performance since 2022 and four straight losing weeks. The S&P 500 and the Nasdaq decreased for three consecutive weeks.

Wall Street braces for a stacked week of earnings, mainly reports from major technology companies. 160 companies in the S&P 500 are expected to report earnings. All eyes will be on results from mega-cap tech names, which include Amazon, Apple, Alphabet, Meta Platforms, and Microsoft.

“This week may be a fork in the road of equities. Bottom-up drivers will either confirm or reject what the challenging macro backdrop has given us over the previous three weeks,” MKM’s JC O’Hara said in a note.

Coca-Cola shares closed up 1.1% after reporting better-than-expected quarterly earnings before they came down on Monday.

On the downside, fears of a global slowdown sent oil prices lesser. WTI crude settled 3.5% lower on Monday, back below $100.

On Monday, energy shares retreated, comprasing the worst-performing S&P 500 sector. Chevron decreased about 2.2% and was the second-biggest decliner on the Dow. Exxon Mobil lost 3.4%.