Nasdaq gains limited by Nvidia and Alphabet slides; bitcoin nears $100k milestone
On Friday, the Dow Jones Industrial Average closed at a record high, gaining 426.16 points, or 0.97 percent, to reach 44,296.51.
This marks its third consecutive positive session and an all-time closing high, as reported by CNBC. The S&P 500 rose by 0.35 percent, finishing at 5,969.34 for its fifth straight day of gains.
The Nasdaq Composite, heavily focused on technology, added 0.16 percent to close at 19,003.65. However, its growth was tempered by Nvidia’s 3.2 percent drop and Alphabet’s 1.7 percent decline.
For the week, the Dow rose by approximately 2 percent, while the S&P 500 and Nasdaq each gained about 1.7 percent. These increases represent a recovery from the previous week when Wall Street’s postelection rally paused.
Investors continued a trend of shifting investments from technology to economically sensitive sectors.
The industrial and consumer discretionary sectors led gains in the S&P 500, while communication services recorded the weakest performance.
Small-cap stocks also showed strong performance, with the Russell 2000 rising 1.8 percent on Friday and ending the week with a 4.5 percent increase.
Bitcoin approached the significant milestone of $100,000, underlining its ongoing strength.
Sam Stovall, chief investment strategist at CFRA Research, commented on the trends driving the market, stating, “Investors are rotating out of the previous high flyers of large-cap communication services and technology and into other cyclical sectors of consumer discretionary, industrials, and financials, as well as mid- and small-cap stocks.”
He attributed this activity to the traditional end-of-election-year rally, where historically all sizes, styles, and sectors within the S&P 1500 show price increases.
