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The Nasdaq Composite has fallen about 4% this week.
Dreamstime
Technology stocks briefly touched “correction” territory on Friday, as did the recent fall of the
Nasdaq Composite
extended beyond 10%. At the worst levels of the session index, it fell 11.9% from the close on February 12, to 14,095.47. But the Nasdaq turned green again in mid-afternoon trading.
Even after recovering from this morning’s deep losses, technology stocks are down about 4% during the week and about 1% during the year, pressured by rising interest rates. interest and the rotation of technological actions to more economically sensitive sectors, such as energy. , industrial and financial. The ten-year Treasury yield has risen slightly to 1.56%, but overshadowed the 1.6% level ahead of Friday’s session.
The market continues to inflict a particularly harsh punishment on the stocks they led in 2020: high multiple and high growth, as well as new public cloud stocks. He
ARK Innovation ETF
(ARKK), a popular fund traded on stock exchanges with large positions in recent announcements such as Tesla (TSLA),
Of the year (YEAR)
and Teledoc (RDOC), down 2.4% in the session and down 26% from its mid-February high.
Helping the index on Friday was a barrage of bullish recommendations on inherited technology stocks.
Oracle
(ORCL) is negotiating much more on a Barclays upgrade,
JP Morgan
activated bullish
Cisco
(CSCO), Goldman raised its rating
Western Digital
(WDC) i
Morgan Stanley
hit the table
Microsoft
(MSFT). Analysts are increasingly focusing on the potential of enterprise technology hardware and software stocks to gain momentum from the expected revenue collection later this year. All four stocks are trading higher.
Stocks in the cloud have become mixed, but there are multiple names
Palantir
Technologies (PLTR),
C3.
ai (AI),
Snowflake (NEU),
Zoom Video Communications
(ZOOM) i
Shopify
(SHOP) all remain red in session. Chip stocks are mostly higher, as investors look for ways to make constant supply constraints, as so-called “e-tail” stocks widen recent losses as the market anticipates a reopening of the economy to later this year.
About halfway through the session, the Nasdaq Composite had regained its previous losses and was sitting near the flat line at 12,736.66. That is, about 50 points above the correction territory.
Write to Eric J. Savitz at [email protected]