Markets
Tech rebound on Friday leaves S&P 500 down 2.7% on the week and Nasdaq in correction
A bounce in AI stocks lifted the Nasdaq 1.1% on Friday, but the week still ended in losses across the three main US indexes.
HedgeWeekly News Desk ·
US stocks closed Friday with a split verdict. The Nasdaq Composite gained 1.1% and the S&P 500 rose 0.3%, while the Dow Jones Industrial Average slipped 0.5%. For the week, the Nasdaq fell 3.4%, the S&P 500 lost 2.7% and the Dow shed 0.9%, according to Investing.com and CoinCentral.
Chip and AI names did the lifting after Thursday's rout pushed the Nasdaq into correction territory. AMD rose roughly 11%, IREN about 19% to 20% after quarterly results, and Nvidia between 2.8% and 3.9%, depending on the source. Lam Research gained 8.5% after announcing up to $25 billion in share buybacks, AP reported, while Axon Enterprise fell 17.1% on weaker results.
The gains were narrow. A ProShares ETF tracking the S&P 500 excluding technology ended Friday flat, CoinCentral reported. The S&P 500 still sits 5.3% below its record high set last month, AP said. The 10-year Treasury yield traded near 4.85% after a payrolls report of 165,000 jobs, far above the 65,000 economists expected, and Brent crude fell below $100 a barrel.
For funds and allocators, Friday showed how concentrated recent returns have become: a one-day rally in a handful of AI names barely changed the weekly damage, and the rest of the market gave little help. Next week's October consumer price index is the next test, with traders already leaning toward a December rate hike after the jobs data. A hot print could pressure the same crowded technology positions that rebounded on Friday.