The stock market recovers from a 4-day decline with Nasdaq taking the lead

The stock market saw a rise on Tuesday, following a recovery from the previous session’s steady sell-off. Amazon took the lead of Big Tech shares with a higher percentage.

The S&P 500 closed Tuesday 1.1% higher at 3,315.57. The Nasdaq Composite rose 1.7% to 10,963.64. While the Dow Jones Industrial Average hit 0.5% to 27,288.18.

For the first time in five days on Tuesday, the S&P 500 and Nasdaq posted a daily gain, with the Dow snapping a three-day losing streak.

Nasdaq’s Amazon shares were up 5.7%, making Tuesday their biggest one-day rally since July 20. This happened after a Bernstein analyst upgraded the company from a hold to a buy, adding that the e-commerce giant offers an attractive entry point for investors.

Along with Alphabet shares, Facebook and Microsoft shares were up more than 2%. While Netflix rose by 0.8%.

In other to further support the market, the Federal Reserve Chairman Jerome Powell said the central bank will continue to support the economy “for as long as it takes.” The chairman added that while there are still uncertainties about the path ahead, economic activities have picked up. However, there are still coronavirus concerns that still prevent the market and economy from recovering fully.

U.K. Prime Minister Boris Johnson announced additional restrictions to help curb the spread of the coronavirus. Following his announcement, major averages were temporarily lower. The Prime Minister noted that the nation was at a “perilous turning point” with that he ordered that restaurants and bars to be closed between 10 pm and 5 am.

“Coronavirus concerns have resurfaced, worrying investors that a reversal in reopening progress could be near,” said Lindsey Bell, chief investment strategist at Ally Invest, in a note. “More and more uncertainty is arising as we get closer to the election but no closer to Congressional fiscal relief. But we’re still optimistic this dip will be bought sooner rather than later.”

Generally, September has been quite a difficult month on Wall Street with the market plagued with uncertainties of the coronavirus and political uncertainties about the death of Justice Ruth Bader Ginsburg. The S&P 500 was down more than 5% month to date, and the Nasdaq down 6.9%. The Dow has also dropped 4% in September.

“There’s no reason to think this won’t keep being a choppy market,” said LL Kinahan, chief market strategist at TD Ameritrade. "Coronavirus overshadows everything right now. There's no end date for that. You don't know when you'll get a resolution to that."