U.S. markets and stock ETFs rebounded Wednesday, following a three day back-to-back plunge, as investors jumped back into a cheaper market with technology stocks taking the lead.

On Wednesday, the Invesco QQQ Trust (NASDAQ: QQQ) was up 3.2%, SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) was 2.0% higher and iShares Core S&P 500 ETF (NYSEArca: IVV) gained 2.3%.

“Call off the five-alarm fire, it’s not here,” Peter Kenny, founder, Kenny’s Commentary LLC and Strategic Board Solutions LLC, told Reuters. “It is very important to realize those mega-cap names have pulled the market higher and higher, so far out of range as of last week that the market did have to come back into some sort of reversion to the mean.”

Kenny also noted that the Nasdaq’s ability to hold its 50-day moving average, a technical support level, was a key factor in reversing the market’s direction.

“Things calmed down a lot,” Fawad Razaqzada, an analyst at ThinkMarkets, told the Wall Street Journal. “We got the correction we should have had a few weeks ago. Now investors are asking whether they should buy the latest dip.”

Despite the correction over the past three days, the Nasdaq and other major indices are still about 50% higher from their March lows after a sustained bull market rally. Technology stocks have been a particular focus in this year’s post-coronavirus rally as investors focused on areas that have benefited or more quickly adapted to a Covid-19 environment.

“Tech is expensive because people think it can grow regardless of the economic backdrop,” James Athey, senior investment manager at Aberdeen Standard Investments, told the WSJ. “There are varying degrees of truth to that.”

Nevertheless, market observers warned that volatility could be here to stay as traders will see wider oscillations ahead of the U.S. presidential election and the historically turbulent months of September and October.

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