The tech-heavy Nasdaq index rallied in choppy trading on Friday, even as sentiment remained fragile after the index's worst performance in four months the day before as fears of rising inflation kept U.S. bond yields near a one-year high. This report produced by Yahaira Jacquez.
- The NASDAQ index rallied in choppy trading on Friday as big tech names such as Apple and Amazon rebounded following a big sell-off in the previous session amid surging bond yields. The S&P 500 ended little changed, while the Dow closed lower after dropping earlier in the session to a three-week low. The benchmark 10-year US Treasury yields eased to roughly 1.4% after jumping to about 1.6% on Thursday.
Still, the sudden rise in yields has tempered investors' appetite for technology stocks. But Kevin Nicholson, chief investment officer at RiverFront Investment Group, says tech is still king.
KEVIN NICHOLSON: Today is a reversal for technology because it was beaten up so badly yesterday. I still believe that technology is going to be one of the leaders going forward, even though we are getting that cyclical rotation where you're starting to see more people focus on industrials and materials. And that's largely driven because of the potential of a stimulus package that's going to focus on infrastructure. But I do think that you're going to see equity markets be more volatile over the coming weeks, just because we've gotten such a dramatic move-up in yields at such a rapid pace.
- An early surge in the shares of GameStop fizzled and left the video game retailer stock down 6.4% on Friday, throwing water on a renewed rally this week that has left analysts puzzled. Meanwhile, on the economic front, the latest data showed US consumer spending increased by the most in seven months in January after household incomes got a boost from the latest round of stimulus checks.