(Reuters) – Wall Street ended higher after a volatile session on Friday, with Nasdaq rebounding at the end of a week that saw him extend losses to about 10% of his previous record.
All three major indexes recovered from losses earlier in the day, with investors in the last few sessions frightened by rising interest rates that offset the optimism about an economic recovery.
Microsoft rose 2.15%, boosting the S&P 500 more than any other stock, with gains at Alphabet, Apple and Oracle also raising the index.
US Treasury reference earnings in 10 years reached a new record of 1.626% in one year, after non-farm payrolls increased by 379,000 jobs last month, exceeding an increase of 182,000 predicted by economists polled by Reuters .
The focus is also on a $ 1.9 trillion coronavirus bill, when a heavily divided US Senate started what was expected to be a long debate over a series of amendments on how that money would be spent.
Nasdaq recorded its third consecutive weekly decline, after a recent spike in Treasury yields affected demand for rising tech stocks.
The rise in interest rates disproportionately harms high-growth technology companies because investors value them based on expected profits in future years, and high interest rates damage the value of future profits more than the value of profits made in the future. short term.
The high-tech Nasdaq is about 8% below its February 12 closing high.
Jake Dollarhide, executive director of Longbow Asset Management in Tulsa, Oklahoma, said his company in recent days bought shares in a handful of growing companies whose prices were hit by the recent sale.
“Next week, I expect the volatility to continue, with pockets of opportunity, with certain things that were sold potentially recovering,” said Dollarhide.
The Dow Jones Industrial Average rose 1.85% to close at 31,496.3 points, while the S&P 500 gained 1.95% to 3,841.94.
The Nasdaq Composite rose 1.55% to 12,920.15.
In a busy session, the volume on the US stock exchanges was 17.4 billion shares, compared to the average of 15.3 billion for the entire session in the last 20 trading days.
For the week, the S&P 500 rose 0.8%, the Dow rose 1.8% and the Nasdaq lost 2.1%.
In Friday’s session, the energy sector’s S&P 500 index rose 3.9%, for more than a year, as oil prices skyrocketed. [O/R]
Oracle Corp made a jump of more than 6% after Barclays upgraded the business software maker to “overweight”, hoping for improvements in the IT spending environment.
Early issues outnumbered declining ones on the NYSE by 2.86 to 1; on the Nasdaq, a 2.12 to 1 ratio favored the forwards.
The S&P 500 recorded 55 new 52-week highs and no new lows; the Nasdaq Composite recorded 225 new highs and 134 new lows.
Reporting by Shashank Nayar and Medha Singh in Bengaluru; Aurora Ellis Edition