After briefly losing momentum from the January rally, stocks rallied on Friday to finish the week strong.
The Dow Jones Industrial Average added 315 points, or 0.9%, to 33,341.61, while the S&P 500 advanced 1.3% to 3,970.33. Both indices suffered a three-day losing streak. Meanwhile, the Nasdaq composite rose 2.6% to end the day at 11,135.34, helped by Netflix and Alphabet..
The Nasdaq was the best performer for the week, posting a 0.5% gain and its third straight week. The Dow ended the week down 2.8% and the S&P posted a 0.76% loss, snapping two-week winning streaks.
All major averages are in positive territory for the year.
“We’ve had a much higher emotional reaction than expected,” said Jeff Gilberg, founder and CEO of KKM Financial. “A lot of people were very pessimistic and we saw parabolic moves to start the year. Now, as expected, markets don’t move in a straight line.”
“We’re finding a way to keep moving and have more lows,” he added. “The highs and lows put some confidence in the bulls. However, the technicals still favor the bears and sell rallies.”
Investors continued to monitor earnings reports and mega-cap tech stocks drove the market higher. Netflix rose 7% Posting more subscribers than expected Although its quarterly earnings missed analysts’ estimates. Alphabet rose 5% after the company announced it would lay off 12,000 employees.
“You’re seeing a lot of weight going into some beat up technology, and people are thinking a little bit more about the complete technology breakdown that we saw in 2022,” Gilberg said.