Tech Stocks Push Nasdaq 0.44% Higher While Other Indices Fall
The Nasdaq Composite was up on Friday as several tech stocks performed very well and may repeat this week.
Quick overview
- Tech stocks led the market on Friday, with the Nasdaq Composite gaining 0.44%.
- Microsoft, Apple, and Super Micro Computers contributed to a minor tech rally despite the Dow and S&P 500 indices declining.
- The potential for a Fed interest rate cut and tariff changes are boosting optimism in the tech sector.
- While some tech stocks are experiencing pullbacks, overall investor sentiment remains bullish for the week ahead.
It was the tech stocks once again dominating the market on Friday as the week closed off, with the Nasdaq Composite gaining 0.44% as a result.
The Dow Jones and S&P 500 indices were both down as Friday trading finished, with the Dow down 0.59% and the S&P 500 losing 0.05%. Microsoft (MSFT), Apple (APPL), and Super Micro Computers (SMCI) all gained on Friday and helped create a minor tech rally going into the weekend.
Tech stocks are particularly promising right now thanks to the strong potential for a Fed interest rate cut this week and the likelihood that many of President Donald Trump’s tariffs will be repealed or lightened. The tech market tends to gain the most from these changes, as tech stocks have performed very well for much of the year already.
Monday Sees the End of the Tech Rally?
As premarket trading started for the new week, Super Micro Computers dipped 0.4%, still holding on to some of its gains from the day before when it climbed more than 2%. Microsoft has gained nearly 2% on Friday but was down 0.83% on Monday morning during premarket trading.
We are seeing pullback for a lot of the tech stocks as the week begins, although much of their gains have been retained. This demonstrates that the market believes they climbed too quickly but that at least some of their upward progress was warranted.
We anticipate that investors will remain bullish across much of the stock market, anticipating a rate cut later in the week and perhaps some good news on tariffs as well. The recent jobs data and CPI report were disappointing, showing that inflation was inching higher, and this information has kept the stock market back from climbing as high as it could last week. We may see this data hold the market back as well for the next few days, but we expect another rally before the end of the week.
Already, several tech stocks are rallying. Alphabet (GOOG) was down Friday but is climbing Monday morning. Tesla (TSLA) likewise performed mediocre on Friday but is rallying 8.34% on Monday. Expect to see some other tech stocks do very well as the week progresses.
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