Tesla shares have led a rebound in tech stocks, just one day after stock in the electric car maker suffered its biggest ever drop, wiping $16.3 billion from the net worth of CEO Elon Musk. Shares of Tesla jumped 11% for the day on Wednesday, after shedding about a fifth of their value in the previous session following the company’s surprise exclusion from the S&P 500. Apple, Salesforce and Microsoft, which have borne the brunt of the tech rout, were also up, and among the top boosts to the blue-chip Dow. Amazon and Facebook also climbed, a day after their declines pushed the tech-heavy Nasdaq into correction territory as it ended 10% below its September 2 closing high. The tech rally helped boost S&P 500 by 2%. It was the best day in three months for the index, which recovered a little more than a quarter of its losses from the prior three days. The Nasdaq – seen as the bellwether for the US stock market – fell into correction territory after dropping 10% from its record close last week, and down 4.1% on Tuesday night at 10,847.69 in New York. It marked a continuation of a sell-off that gripped the stock market late last week over concerns that a tech rally – that has seen nine months of record highs in the sector – had pushed valuations to unjustifiable values.  But despite the drop, the tech index is still up 20.9% since January. Since governments shut down economies earlier in the year due to the pandemic, American tech stocks have seen huge gains, pinned on the belief that tech firms would benefit from changes in spending habits and more online use during lockdown. However, investors are showing concerns over the fragility of the gains that were reportedly fuelled by Japanese technology group Softbank by buying derivatives worth between $30 billion and $50 billion, according to The Times. Traders have warned that this has left Softbank and the broader market exposed if investors liquidate their positions, suggesting they have bought billions of dollars’ worth of tech stocks to hedge against Softbank’s options. Market Makers could be forced to sell if prices fall further, but analysts predict that the drop-off last week and on Tuesday could prove to be a correction rather than a more serious sell-off.