US stocks surge as tech rallies; S&P 500, Dow down for fourth straight week

As the mega-cap tech stocks such as Facebook, Amazon, Apple, Microsoft and Nvidia had rallied over 2.1 per cent, Wall St. had wrapped up the Friday's session with solid gains

by Sourav D
US stocks surge as tech rallies; S&P 500, Dow down for fourth straight week

On Friday, tech stocks had again come to the rescue of US stock indices, while all three major indices of Wall St. had gained more than 1 per cent, however, amid fears of a second wave of pandemic outbreak, the trade-sensitive Dow alongside benchmark S&P 500 had reported their fourth consecutive weekly percentage decline, marking up their longest weekly losing stream at least in a year.

In point of fact, as the Wall St. again rode over the rises of tech stocks, several analysts were quoted saying that a number of major equity funds alongside high-profile investors began to purchase the battered tech stocks earlier this month after the tech-heavy Nasdaq had confirmed a correction course.

Nonetheless, followed by the Friday’s Wall St. round off, the Nasdaq has been up more than 22 per cent this year and had ended the day in a strident tone after falling in the previous three sessions, while S&P 500 is 2 per cent up this year so far.

In tandem, the gains of Wall St. on Friday in part were catalysed by a media headline that was quoted saying the bipartisan lawmakers in the Capitol Hill had been working out a $2.2 trillion pandemic relief aid, while a number of upbeat data including a prudential rise in US capital goods’ order last month had added to further bullish wing to investors’ optimisms.

Wall St. gains as tech rally rekindles

Citing statistics, as the mega-cap tech stocks such as Facebook Inc., Apple Inc., Amazon, Microsoft and Nvidia Corp. had added more than 2.1 per cent, on Friday’s Wall St. closure, the tech-heavy Nasdaq surged 2.26 per cent to 10,913.56 and the benchmark S&P 500 soared 1.60 per cent to 3,298.46, while the trade-sensitive Dow gained 1.34 per cent to wind down the day at 27,173.96.

Meanwhile, adding that the American investors were heavily betting on a long-buy position on tech-stocks, a senior market analyst at OANDA in NY, Edward Moya said on the day’s session closure, “It’s dip buying.

When you look at the correction that we’ve seen in these tech giants, people are still going to want to hold U.S. equities. The reality is that 2021 is going to be a much higher stock market and you’re probably going to see tech still lead the way.

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