Wall Street is attempting a big rebound from the brutal tech-driven sell-off, and if the market could pull it off, these are the names that could lead the initial burst higher. The tech-heavy Nasdaq Composite jumped nearly 4% on Friday as dip buyers waited to come back after a painful rout. The Nasdaq is already in a bear market, down more than 25% from its all-time high last November. In the short run, if the market can indeed recoup at least a portion of the steep losses, some of the biggest losers this year might see a dramatic comeback. We ran a screen to zoom in on these potential leaders: Stocks whose prices have been cut in half this year Heavily shorted names with more than 10% of their float — shares available for trading — sold short Stocks that jumped more than 5% on Thursday Russell 1000 names The names on the list all traded higher Friday. Carvana popped more than 2% even after another downgrade Friday on Wall Street. Rivian also jumped nearly 10%, while Upstart climbed more than 16%. Some of these stocks have been in the epicenter of the market turmoil this year as unprofitable, high-growth tech names got hit the hardest in the face of rising rates that lower the present value of future earnings. To be sure, buying into these names right now could be risky because these could also be the companies to lead the way down if the stock market turns sour again.
Traders on the floor of the NYSE, May 10, 2022.
Wall Street is attempting a big rebound from the brutal tech-driven sell-off, and if the market could pull it off, these are the names that could lead the initial burst higher.