Publicly traded channel companies whose stock prices were hammered on Monday regained some ground on Tuesday as global markets rallied.
Major channel players including DXC Technology and CDW saw a partial rebound in their share prices Tuesday as the Dow, Nasdaq and S&P 500 each climbed nearly 5 percent during regular trading.
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Global systems integrator and solution provider DXC had seen the tech industry’s largest stock price decline, by percentage, on Monday, with its shares cascading 17.8 percent. But on Tuesday, DXC’s stock price rose about 4.9 percent to close at $16.40 a share.
That added about $193 million back to DXC’s market capitalization, which reached $4.16 billion at the close of regular trading.
Solution provider CDW, which had shed nearly $2 billion from its market cap on Monday with an 11.9-percent stock price decline, saw its shares regain about 6 percent on Tuesday. The strong showing returned about $845 million to CDW’s market cap, which stood at $14.96 billion at the end of regular trading.
IT distributor Synnex did not make up quite as much ground but still climbed 2.4 percent to close at $109.21 a share, following Monday’s 12.7-percent drop in Synnex’s stock price. Shares in IT distributor Tech Data, meanwhile, rose 3.2 percent to close at $139.32 on Tuesday.
On Monday, the Dow plummeted 2,013 points and the S&P 500 shed 225 points, making it the worst day for both since 2008. On top of fears over the uncertainties around the coronavirus outbreak, investors were also reacting to sliding oil prices.
Tuesday, however, saw the Dow add back 1,167 points and the S&P 500 rise by 135.67 amid talk of potential stimulus from the U.S. government.
Shares in many of the largest tech industry vendors surged on Tuesday. Companies that regained nearly all of their losses from Monday included Dell Technologies, which rose 8 percent, and Microsoft, which climbed 6.8 percent. Also having a good day were Intel (which rose 6.2 percent), HP Inc. (up 5.4 percent) and Hewlett Packard Enterprise (which climbed 4.5 percent).