Tech Stocks Shine As Nasdaq Jumps 2%; Netflix Alphabet Lead FANG Stocks

Top tech stocks rebounded with a vengeance in the stock market Monday as the bulls started off the week in the driver's seat.

The Nasdaq composite outperformed in afternoon trading, up around 2%. The S&P 500 picked up 1.7% and the Dow Jones industrial average added 1.6%. Volume on the Nasdaq was strong early but faded. Volume on both exchanges was tracking close to Friday's levels.

Merck (MRK), Intel (INTC), JPMorgan (JPM) and Cisco Systems (CSCO) outperformed in the Dow. Gains ranged from 3% to 6%. Earnings from JPMorgan are due Friday before the open.

Money flowed out of bonds and into stocks. The 10-year Treasury yield added 2 basis points to 2.80%.

Top Tech Stocks Outperform

IBD 50 names shined as about half the names in the screen scored gains of 2% or more. Two China stocks stood out. After a nice bounce off the 10-week moving average last week, Baozun (BZUN) soared 9%. Meanwhile, small-cap China stock Daqo New Energy (DQ) showed compelling price action, leaping 6%. It broke out over a descending trend line, found by connecting the stock's recent highs.

Elsewhere, chip equipment maker MKS Instruments (MKSI) reclaimed the 50-day moving average after retracing a mild gain from a conventional entry at 110.60. Shares rose 4% to 114.95. Group peer and fellow IBD 50 component Entegris (ENTG) has a similar-looking chart. Shares rose 4.5%.

FANG Names Rebound

Of the so-called FANG names, Leaderboard name Netflix (NFLX) and Google parent Alphabet (GOOGL) led the charge, both with gains of around 3%.

Facebook (FB) added nearly 2% as CEO Mark Zuckerberg arrived on Capitol Hill ahead of two days of congressional testimony.

In merger news, Novartis (NVS) paid a big premium for AveXis (AVXS). Shares of AveXis soared 81% after Novartis announced plans to acquire the company for $8.7 billion. AveXis has a promising gene therapy drug to treat spinal muscular atrophy.

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