The Nasdaq has recovered more than 8% of the 21% it has fallen from its November high in the last few days, as dip buyers re-enter the market despite the Ukraine-Russia conflict.
Friday’s trade saw a massive turnaround in sentiment, with the Nasdaq gaining 1.6%, the Dow Jones up 2.5% and the S&P 500 adding 2.2%. Eight of the market’s 11 sectors gained more than 2% on the day.
The driver seems to be twofold, one being a return to risk-on mode by investors who had sent the market lower in 2022, and the other hopes that the conflict may push back the Federal Reserve’s rate hike timetable.
Big tech, gold gains
Lesser-known names, like MercadoLibre (NASDAQ: MELI) up 7%, rallied alongside the giants, with Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) all gaining more than 1% as investors flocked back to ‘quality’ in a time of stress.
The price of gold is nearing US$2,000 per ounce for the first time in a decade, whilst oil has settled somewhat as the results of the invasion shakeout into the markets.
Economic data showed a strong consumer market, with spending up 2.1% in January, but a weaker housing market with price inflation likely a factor in the 5.7% fall in pending home sales.
US stocks post weekly gain
The US stock market continues to outperform Australia, with many viewing it akin to an emerging market, the Dow Jones finishing flat for the week, the S&P 500 up 0.8% and the Nasdaq up 1.1%.
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is set to follow this strong global lead to push higher when the market opens on Monday. For a round-up of the latest news, check out my ASX 200 morning report.
