The Nasdaq Composite rose on Friday as investors tried to ride out the January rally and earnings reports continued to disappoint.
The tech-focused Nasdaq rose 2%, helped by Netflix and Alphabet. The S&P 500 advanced 1.3% and the Dow Jones Industrial Average added 213 points, or 0.7%. Both indices were poised to snap a three-day losing streak. All major averages are in positive territory for the year.
For the week, the Nasdaq is headed for a 0.5% gain. Meanwhile, the Dow was down more than 2% and the S&P 500 was down 1.5%.
“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.”
Mega-cap tech stocks boosted the market. 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.