After a rollicking ride, stocks reversed losses at close on Friday. The Dow Jones Index rose 330 points or +1.38% to 24,190.90 and the S&P 500 nipped up 38 points or +1.49% to 2,619.55 as ten out of 11 sectors made gains led by technology up +2.53% and real estate up +2.40%. Energy fell -0.35%.
- Dow 24,190.90 +1.38%
- S&P 500 2,619.55 +1.49%
- Nasdaq 6,874.49 +1.44%
- Russell 2000 1,477.84 +0.96%
- NYSE Composite 12,405.82 +1.10%
- Gold 1,317.2 -0.14%
- Oil WTI $59.22 -3.16%
The tech-heavy index, Nasdaq, was down 113 points or -1.66% in afternoon trading but climbed 97 points or +1.44% to close at 6,874.49. Nasdaq has had an interesting week with the five largest tech companies losing $437bn in market cap as a result of the sell off according to CNBC.
Technology from rout to win
Shares in major tech companies rebounded or pared losses after diving on Thursday and in earlier trading.
- Alphabet +3.83%
- Apple +1.22%
- Facebook +2.64%
- Amazon -0.81%
- Microsoft +3.73%
Semiconductor companies also snapped back with Intel up +2.81% and Advanced Micro Devices gained +0.80%. Nvidia rose +6.69% after market-beating earnings. Meanwhile S&P Global Ratings warned in a report that the tax overhaul in the long run could have a negative impact on the credit ratings of technology issuers.
Although tech companies will improve their cash flows through lower corporate tax rates and gain access to “trapped” foreign earnings through repatriation. S&P warned that it believed that "the overall industry credit profile will weaken over time, largely because of the potential for more aggressive financial policies in response to greater access to overseas cash."