The Dow Jones finished the week flat, with the index ending in the red for the first time in three weeks, down 0.8%.
Both the S&P 500 and the Nasdaq were higher, jumping 0.2% and 0.4% on Friday taking their weekly gains to 0.4% and 1.9%, respectively.
Nasdaq rallies on tech
Eight of the eleven sectors within the S&P 500 finished higher, yet it was the big tech names that really drove the market.
Amazon (NASDAQ: AMZN) added 4%, Twitter (NYSE: TWTR) 2.5% and Alphabet (NASDAQ: GOOGL) 1.5% over the week despite the inflation rate hitting 5%.
Despite expectations that a spike in inflation would cause a market-wide sell off, government bond yields actually fell, supporting market but particularly technology valuations. The fall was the most in over a year.
Whilst the consensus has moved to the ‘value’ trade being the greatest opportunity, could the rally be over before it even started?
Elsewhere, cybersecurity remains a key focus for businesses across the globe with a number of recent high profile hackings. McDonald’s (NYSE: MCD) was the latest, reporting that hackers had stolen some customer data.
US stock market movers
Here’s how other popular US stocks closed out the week on Friday.
- NIO (NYSE: NIO) up 6.8%
- Peloton (NASDAQ: PTON) up 6.6%
- DoorDash (NYSE: DASH) up 6.4%
- Zoom (NASDAQ: ZM) up 5.7%
- Spotify (NASDAQ: SPOT) down 1.4%
- Snowflake (NYSE: SNOW) down 3.3%
- Upstart (NASDAQ: UPST) down 14.3%
The ASX is closed today for the Queen’s Birthday holiday, but the latest SPI futures are pointing to a positive open for the S&P/ASX 200 (ASX: XJO) on Tuesday.
