S&P 500 down for the second week in a row as technology struggles.

Business

The S&P 500 dipped for the second week in a row on Friday, as the market’s movement from growth to value persisted, holding tech companies and the broader market in check.

The S&P 500 dipped 0.1 percent, while the Dow Jones Industrial Average gained 0.37 percent, or 124 points, and the Nasdaq Composite sank 0.48 percent.

Investors believe that value sectors of the prices will likely outperform growth amid the economy’s continuous momentum, propelling financials, energy, and industrials higher.

Financials were the strongest sector on the day, with Morgan Stanley (NYSE:MS), SVB Financial (NASDAQ:SIVB), and Citigroup (NYSE:C) leading the way.

Meanwhile, a rise in Boeing (NYSE:BA) boosted industrials higher on a Reuters story that the aircraft manufacturer is considering increasing manufacturing of its 737 MAX airplanes to as many as 42 airplanes per month by late 2022.

Conversely, energy was boosted by a comeback in oil prices from earlier this week’s slump, even as investors fear a surge in Iranian production is on the horizon as the Islamic Republic moves closer to a nuclear accord.

The economic background continued to support investor hopes on a greater rebound, as manufacturing and services activity, which are crucial drivers of the economy, improved.

Meanwhile, technology lost ground as growth stocks struggled to regain their footing, but avoided a sixth consecutive week of losses.

Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), Amazon.com (NASDAQ:AMZN), and Facebook (NASDAQ:FB) all finished in the red.

Apple came under more criticism when CEO Tim Cook testified in a court dispute with Epic Games about the company’s App Store revenue strategy.

Chip stocks were flat following a robust week of gains, however Nvidia (NASDAQ:NVDA) was up 3% after proposing a 4-for-1 stock split that will require shareholder approval.

The minutes of the Federal Reserve’s April meeting revealed that some Fed members were beginning to consider slowing bond purchases. The market broadly saw the comments as confidence in the Fed’s ability to set the groundwork for tapering without the tantrum or sell-off in risk witnessed previously.

In terms of profits, Deere (NYSE:DE) and Palo Alto Networks (NYSE:PANW) both posted quarterly results that above analysts’ expectations, sending their shares up more than 1% and 5%, respectively.

Meanwhile, in Washington, the White House said that it had reduced the amount of its infrastructure stimulus program from $2.25 trillion to $1.7 trillion ahead of President Joe Biden’s meeting with Senate Republicans who are cautious of further spending. The plan is well short of the GOP’s counter-offer of $568 million.

DOW JONES down Red Sell off

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts