Why Shares of Apple, Facebook, Square, and Other Growth Stocks Popped Today

After a brutal decline, tech stocks rebounded on Tuesday. By the close of trading, shares of Apple (NASDAQ: AAPL), Facebook (NASDAQ: FB), and Square (NYSE: SQ) were up 4.1%, 4.1%, and 11.5%, respectively. Many other high-growth stocks rose even more.

The prices of many tech stocks soared in 2020, as investors sought out businesses that could continue to generate sales growth during the coronavirus crisis. Yet in recent weeks, as COVID-19 case counts have begun to decline, we've seen a rotation out of high-priced growth stocks and into less expensive companies.

Investors seemed to be assuming that many tech stocks would see their sales growth slow dramatically once the pandemic subsides. In turn, the Nasdaq Composite (NASDAQINDEX: ^IXIC) declined by about 10% since its highs in February. Many premium-priced growth stocks fell much more during this time.

Source Fool.com