By Yasin Ebrahim
Investing.com – The S&P 500 rose on Friday as major technology supply continued at a time when investors appear to be more defensive after signs earlier this week that the Federal Reserve could shrink to end of year.
The 0.7% rise, the 0.6% rise, or 208 points, the Nasdaq rose 1.0%.
Apple (NASDAQ :), Google-parent Alphabet (NASDAQ :), Microsoft (NASDAQ :,, and Facebook (NASDAQ 🙂 were listed higher.
As major technologies continue to rise, other corners of the market, including cyclical ones, struggle to make a profit amid concerns about the impact of the Delta variant on economic growth.
“[A]56% of S&P shares are above the 50-day moving average, [but] this has dropped from 92 or 93%, ”David Keller, chief market strategist at StockCharts.com, told Investing.com on Friday.
The technology, given its higher weighting in the S&P 500, has cushioned the consequences, helping the market as a whole to grow.
In addition to technology, utilities, a bond intermediary and a defensive corner of the market, were one of the main sector winners on the day. This, however, is one more sign that investors are worried about the uncertainty ahead.
“Now I am more concerned with what I see with the emergence of sectors such as public services that meet in a week like this […] this speaks more to not just hiding from Microsoft or defending itself, but investors trying to look for higher-yielding opportunities to avoid uncertainty, ”Keller added.
Meanwhile, energy stocks remained stable, but strong weekly losses remained after a fall in oil prices, as rising Covid-19 infections and restrictions, especially in China, have muddy outlook on energy demand.
In terms of earnings, most quarterly bullish reports also supported investor sentiment.
Foot Locker (NYSE 🙂 Second-quarter results that surpassed Wall Street estimates on both the top and bottom lines, and sent their shares more than 8% higher than the top.
Deere & Company (NYSE 🙂 fell 2% as higher-than-expected results were offset by concerns that supply chain problems and rising input costs will continue next year.
In other news, NVIDIA (NASDAQ 🙂 rallied more than 4% after disclosure that House Speaker Nancy Pelosi had bought stock options and bought shares from the chip maker.
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