Nasdaq ends higher, tech stocks retrace some losses
The NASDAQ index rallied in choppy trading on Friday as big tech names, such as apple and Amazon rebounded, following a big sell-off in the previous session. Amid surging bond yields, the s p 500 ended little change while the down closed lower after dropping earlier in the session to a three-week low.
The benchmark 10-year U.S. Treasury yield eased to roughly 1.4 percent after jumping to about 1.6 percent on Thursday. Still, the sudden rise in yields has tempered the investor’s appetite for technology stocks, but Kevin Nicholson, co-chief investment officer at the riverfront investment group says tech is still king.
Today is a reversal for technology because it was beaten up so badly yesterday. I still believe that technology is going to be one of the leaders going forward, even though we are getting that cyclical rotation, where you’re, starting to see more people focus on industrials and materials, and that’s, a that’s largely driven because of the potential of a stimulus package that’s, going to focus on infrastructure.
But I do think that you’re, going to see equity markets be more volatile over the coming weeks. Just because we’ve got such a dramatic move up in yields at such a rapid pace, an early surge in the shares of game stop fizzled and left the video game, retailers stocked down 6.4 percent on Friday, throwing water on a renewed rally.
This week, that has left analysts puzzled. Meanwhile, on the economic front, the latest data showed U.S. consumer spending increased by the most in seven months in January, after household incomes got a boost from the latest round of stimulus checks.