INSUBCONTINENT EXCLUSIVE:
Sometimes, it takes only the promise of a massive government bailout to put that rose-colored filter on the effluent sandwich of today
economic realities.
After yesterday terrifying sell-off, American equities recovered today, with the major domestic indices rising to close
While the day gains do not erase yesterday losses, they are a welcome return to form for equity markets long-accustomed to rising.
The final
results in less turbulent times would be more shocking, but today the Dow Jones Industrial Average rose 1,167.1 points, or 4.89%, the S-P
500 rose 135.7 points, or 4.94%, while the Nasdaq Composite picked up 393.6 points, or 4.95%.
SaaS and cloud stocks, however, lagged their
broader sector, only managing a 3.1% gain, according to the Bessemer-Nasdaq cloud index
This means that after SaaS and cloud stocks lost more yesterday (in percentage terms), they also recovered less than their peers
After a long period of leading, modern software companies are being repriced in the public markets, possibly leaving the company category
with less of a premium over other tech companies.
Stitch Fix sharp decline signals high growth hurdles for tech-enabled startups
The rally
was broad, with bitcoin ending a period of decline, and oil sharply ascending.
Still, the public markets are down from their heights
The Dow is off 15%, and touched a new 52-week low today before recovering
The S-P is also off a smidgen over 15%, while the Nasdaq is down a hair more at 15.2%, compared to its recently set 52-week highs.
A few
more days like today are needed, then, to fully repair the damage
And there still the overhang of bad news, including: a quarantine zone set up in New Rochelle, N.Y.; the terrible shape of oil and gas
companies& debt loads; and the lack of any clarity around an actual bailout from the government.
Hopefully tomorrow morning stocks are
quiet, and then the TechCrunch Public Markets Crew (Shiebs and Alex) can stop writing these posts
Until then, however, expect more.
As a final note, Apple and Microsoft are still trillion-dollar companies
So even in the throes of this correction, tech is hardly in the dumps
And the Nasdaq is up 12.6% over the last year.
