Tech Stocks Rally as Stock Futures Dip

Early trading on Tuesday morning saw U.S. stock index futures slightly lower than Monday after all three major averages reported having gains during the day prior. 

In particular, future contracts that are tied to the Dow Jones Industrial Average lost 107 points on Tuesday. The S&P 500and Nasdaq 100 futures also saw losses, although those were significantly less impactful. 

On Monday, the Dow finished trading 103 points higher with a total gain of 0.32%. The S&P also happened to break a two-day losing streak with a gain of 0.7%, while the Nasdaq was more impressive still with a jump of 1.23%. 

These gains come in time with a 10-year-treasury yield retreat after it hit its 14 months high the week prior. 

Tuesday Marks the One-Year Anniversary of the Bottom of the Coronavirus Pandemic

The 24th of March, this Tuesday, marks the one-year anniversary of the worst point the market hit after the coronavirus pandemic crushed over 30% of stock’s value at what is the fastest pace in human history. 

Since we saw that historic low, the Dow and the S&P have advanced a whopping 80%. The Nasdaq Composite has advanced 93%, while the Russell 2000 has seen the most advancement, as a huge 135%. 

In a statement, Chief Market Strategist at LPL Financial, Ryan Detrick, said the following, “things have come full circle now, as socks have staged a furious rally,” he continued to say, “this bull market is off to an amazing start, but it is important to remember it is still young. While a pickup in volatility would be normal at this stage of a strong bull market, we think suitable investors may want to consider buying the dip. 

This level of confidence in the current market is a sentiment that seems to be shared by members of the American economic industry all over. The Federal Reserve is expecting growth beyond predictions, as is the Treasury Secretary.

Support.com Inc is Monday’s Big Winner

The shares of Support.com Inc. more than tripled on Monday, March 22nd. This massive rally was the result of the announcement that the company was to be acquired by Bitcoin mining giant Greenidge Generation Holdings Inc. 

Support.com is a massive provider of cloud-based software and technical support services, so the integration into what is one of the world’s biggest Bitcoin mining firms is exciting news for many crypto enthusiasts. 

SPRT, which is Support.com’s stock, is currently the single biggest winner in terms of percentage on all major U.S. exchanges, as well as being the second most actively traded. 

The stock shot up a massive 202.8% in one afternoon of trading, which put it in line for the highest close since the end of 2014. The trading volume on the stock also erupted to over 240 million shares, which is a record for SPRT. 

Greenidge has said that it expects the deal to push the company into being the first publicly traded Bitcoin mining company with a wholly-owned power plant. 

According to the terms of the acquisition deal, 5% of Greenidge shares are going to be paid to Support.com shareholders for the company’s assets. 3% of Greenidge shares are also going to be paid in exchange for the estimated $33 million cash that was on Support.com’s balance sheet. 

That being said, the Support.com deal hasn’t closed yet and isn’t expected to do so until Q3 of 2021. Once it does close, however, Support.com shareholders are expected to own an estimated 8% of Greenidge’s shares outstanding.