Wall Street ends higher as tech rally squashes virus fears, but S&P down for week
By Herbert Lash (Reuters) - Technology stocks again rode to Wall Street's rescue on Friday, lifting the main indexes more than 1%, but the Dow and the S&P 500 still posted their longest weekly losing streaks in a year as fears of a slowing economy sparked an almost month-long rout. Investors started buying beaten-down shares after the Nasdaq confirmed a corrective phase earlier this month and the S&P 500 on an intra-day basis briefly broke that barrier this week.
By Herbert Lash
(Reuters) - Technology stocks again rode to Wall Street's rescue on Friday, lifting the main indexes more than 1%, but the Dow and the S&P 500 still posted their longest weekly losing streaks in a year as fears of a slowing economy sparked an almost month-long rout.
Investors started buying beaten-down shares after the Nasdaq confirmed a corrective phase earlier this month and the S&P 500 on an intra-day basis briefly broke that barrier this week.
Both the Dow and S&P 500 notched their fourth straight weekly declines, the longest weekly losing streak since August 2019. The Nasdaq closed higher for the week after falling the previous three, and is now up 22% for the year. The S&P 500 is up a bit more than 2% for the year.
Investors are looking at the long term and believe technology remains the investment of choice, said Edward Moya, senior market analyst at OANDA in New York.
"It's dip buying," Moya said. "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."
Shares of tech mega-caps Apple Inc
The information technology index <.SPLRCT> jumped 2.4% as investors ditched value-linked stocks <.IVX> on signs of a slowdown in the broader economic recovery. Growth-oriented shares <.IVX> gained at a rate almost twice that of value stocks.
Volatility <.VIX> has also shot up as investors look for clarity on whether Congress will approve more stimulus ahead of the Nov. 3 presidential election, which now appears unlikely.
The CBOE Market Volatility Index <.VIX>, known as Wall's fear gauge, fell 7.68%.
"You've had this nice recovery through the summer, and coming into the fall the economy is just a little bit more vulnerable, particularly with a lot of the stimulus that we had starting to taper off now," said Mike Dowdall, portfolio manager at BMO Global Asset Management in Chicago.
The Dow Jones Industrial Average <.DJI> rose 358.52 points, or 1.34%, to 27,173.96. The S&P 500 <.SPX> gained 51.87 points, or 1.60%, to 3,298.46 and the Nasdaq Composite <.IXIC> added 241.30 points, or 2.26%, to 10,913.56.
For the week, the Dow unofficially fell 1.74%, the S&P 500 slid 0.63%, and the Nasdaq gained 1.1%.
Volume on U.S. exchanges was 8.89 billion shares,
The S&P industrials sector <.SPLRCI> rose 1.49% as data showed new orders for key U.S.-made capital goods jumped in August, while a 0.06% slide in energy stocks <.SPNY> gave them their worst week since mid-June.
Cruise liners Royal Caribbean Cruises Ltd
Shares of Boeing Co
Costco Wholesale Corp
The number of coronavirus cases in the U.S. topped 7 million, as Midwest states reported spikes in COVID-19 infections in September, according to a Reuters tally.
Advancing issues outnumbered declining ones on the NYSE by a 2.30-to-1 ratio; on Nasdaq, a 2.94-to-1 ratio favored advancers.
The S&P 500 posted one new 52-week high and no new lows; the Nasdaq Composite recorded 26 new highs and 49 new lows.
(Reporting by Herbert Lash in New York; Additional reporting by Devik Jain in Bengaluru; Editing by Leslie Adler)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
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