Apple, Nvidia lead tech bounce after investors head for the exit last week

MANDEL NGAN | AFP | Getty Images

Nvidia CEO Jensen Huang speaks at a press conference on Jan. 7, 2018.

Technology stocks jumped higher on Monday, scratching back a little after nearly two months of losses as Apple and Nvidia led gains.

The five FAANG stocks – Facebook, Amazon, Apple, Netflix and Google-parent Alphabet – each rose more than 1 percent in premarket trading. Nvidia also climbed 3.1 percent, after Credit Suisse gave the chipmaker an outperform rating.

Credit Suisse said Nvidia’s stock getting slashed nearly in half over the last 8 weeks provides “an extremely compelling entry point.” The latest earnings report “was disappointing,” the firm said, and Nvidia “will like take time” to turnaround. Nvidia “could be significant underestimating the opportunity” from new markets.

Investors fled equities last week, with the widely-held and tech heavy Invesco QQQ seeing more than $1 billion in outflows, according to Jefferies. Nearly half of the QQQ outflows were in technology shares, not including other technology-related names like Amazon. The QQQ jumped 1.4 percent in premarket trading.

Overall, tech stocks have taken a beating since the beginning of October. The FAANG stocks fell into a bear marketlast week, each declining more than 20 percent from recent highs. Since their respective 52-week highs, the FAANG stocks had also lost more than $1 trillion in market valueby last Tuesday.