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Data: FactSet; Chart: Axios Visuals

Tech stocks had a big day on Monday led by gains in three companies, even as U.S. equities broadly ended the day lower.

What happened: Tesla rose 12.5% during the session as traders were again inexplicably lured by its lower share price due to a five-to-one stock split. Apple added 3.5% and Zoom gained 8.6% during the day with its stock jumping by nearly 10% in after-hours trading after posting better-than-expected Q2 earnings.

  • Zoom doubled earnings expectations and saw its revenue jump 355%, beating analysts' expectations by $163 million.
  • Zoom now has about 370,200 customers with more than 10 employees, up 458% year-over-year, and 988 customers paying more than $100,000 in trailing 12 months revenue, up 112% year over year.

Of note: Despite reports that Zoom had shut down accounts of users outside China at the urging of that country's government, the company has largely managed to avoid the ire of the Trump administration.

  • Zoom CFO Kelly Steckelberg told analysts on the company's earnings call that it has no plans to move its engineering teams out of China.

Where it stands: Tesla was the best performing stock in the U.S. during August, rising 74.3% during the month, including a gain of 50% since announcing its stock split on Aug. 11.

The big picture: The Nasdaq ended the day up 0.7% and closed at another record high. All three of the major U.S. indexes finished historically strong five-month periods on Monday.

  • The Dow advanced 29.7%, its biggest five-month percentage gain since July 2009.
  • The S&P 500 added 35.4%, its best five-month run since October 1938.
  • The Nasdaq gained 52.9%, its strongest five months since March 2000, according to Dow Jones Market data.

Go deeper

Felix Salmon, author of Capital
Sep 24, 2020 - Economy & Business

Equity outflows speed up

Data: Investment Company Institute; Chart: Axios Visuals

One paradox of the recent bull-market run is that it has taken place in the face of consistent selling by investors in ETFs and mutual funds.

The big picture: Monthly flows from actively-managed stock-market funds have been negative for years, and while flows into passively-managed funds have been positive, they have generally been smaller.

S&P 500 on the brink of a correction

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Data: FactSet, Chart: Axios Visuals

The S&P 500 hit its highest level ever earlier this month — but as September closes out, the index is teetering on the brink of correction territory.

Where it stands: As of Thursday’s close, the S&P 500 has sunk 9.3% below its record high. Slight gains on Thursday pushed it a bit further away from the 10% decline that would mark a correction — but investors say volatility could be here to stay.

Mike Allen, author of AM
22 mins ago - Politics & Policy

Biden pushes unity message in new TV wave

A fresh Joe Biden ad, "New Start," signals an effort by his campaign to make unity a central theme, underscoring a new passage in his stump speech that says he won't be a president just for Democrats but for all Americans.

What he's saying: The ad — which began Friday night, and is a follow-up to "Fresh Start" — draws from a Biden speech earlier in the week in Manitowoc, Wisconsin: