US STOCKS-Wall Street bounces as tech rout halts

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* Tech-related stocks lead gains on the Dow
* Tesla climbs after losing a third of value in 10 days
* Tiffany drops as LVMH abandons its $16 bln takeover
* Indexes up: Dow 2.18%, S&P 2.55%, Nasdaq 3.24%

(Updates to early afternoon)
By Medha Singh and Devik Jain
Sept 9 (Reuters) - Wall Street's main indexes jumped on
Wednesday as investors took advantage of a three-day sell-off to
buy cheaper technology-related stocks, a day after the Nasdaq
confirmed correction territory.
Tesla Inc TSLA.O shares jumped 6.9% after losing about a
fifth of their value in the previous session, while Apple Inc
AAPL.O , Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O -
the top three U.S. public companies by market capitalization -
rose between 4.6% and 5.3%.
Other stay-at-home winners such as Facebook Inc FB.O and
Google-parent Alphabet Inc GOOGL.O also climbed, a day after
the tech-heavy Nasdaq ended 10% below its Sept. 2 record closing
high.
"Today is definitely a relief switch, but I don't think the
markets are turning the page on some concerns that those
companies have gone too far too fast," said Keith Buchanan,
portfolio manager at GLOBALT Investments in Atlanta, Georgia.
U.S. stocks have become susceptible to wild swings in a
handful of heavyweight tech-related stocks as traders bid up
their shares in a rally that triggered a Nasdaq-led rebound for
Wall Street from its pandemic-lows earlier this year.
The recent pullback has also been driven by worries that
sellers of call options would unwind massive amounts of stocks
that they bought as hedges during the rally.
Media reports said last week SoftBank Group Corp 9984.T
has made big bets on equity derivatives tied to tech firms.
In signs of growing unease about the positioning in tech
stocks, skews, a measure of demand for protective put options in
relation to call options, have risen sharply. Market volatility is expected to further increase in the
run-up to the U.S. presidential election, with September and
October also historically the most choppy two months of the
year.
At 1:06 p.m. ET, the Dow Jones Industrial Average .DJI was
up 598.79 points, or 2.18%, at 28,099.68, and the S&P 500 .SPX
was up 85.02 points, or 2.55%, at 3,416.86.
The Nasdaq Composite .IXIC was up 351.70 points, or 3.24%,
at 11,199.39, and was on course for its best day since April 14.
Growth-linked stocks .IGX jumped 3.3% after lagging value
stocks .IVX such as banks .SPXBK for three straight
sessions.
Market participants warned signs of a pickup in business
activity were not yet strong enough to support a wider market
rotation.
AstraZeneca Plc AZN.L could resume trials for its
experimental coronavirus vaccine next week, the Financial Times
reported, after the British drugmaker paused global trials of
its experimental COVID-19 vaccine. Still, its U.S.-listed shares
fell 1.1%. Tiffany & Co TIF.N tumbled 6.6% after French luxury goods
giant LVMH LVMH.PA warned it was set to walk away from its
planned $16 billion takeover of the U.S. jeweler. Advancing issues outnumbered decliners more than 2-to-1 on
the NYSE and on the Nasdaq.
The S&P index recorded two new 52-week highs and two new
lows, while the Nasdaq recorded 29 new highs and 15 new lows.

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