Bull statue on Wall Street in New York (GETTY IMAGES NORTH AMERICA/SPENCER PLATT)
The New York Stock Exchange ended trading sharply higher on Friday amid a technical recovery from a nightmare week as investors doubted the worst was over.
The Dow Jones gained 1.47%, the Nasdaq added 3.82% and the broader S&P 500 rose 2.39%.
For Wells Fargo analysts, Wall Street offered itself a “growth break” after five consecutive negative Dow Jones sessions and another Nasdaq plunge. A technical rebound, they say, exceeding several technical thresholds down.
“We needed it, but perhaps not very much yet,” commented Grigory Volokhin, president of Meeschaert Financiel Services. “It would take a few boost sessions to say the worst is over and that, frankly, I’d be surprised.”
“It should also be noted that the rebound is not based on some news,” he said, but “a little out of nowhere.”
For the week, the Dow Jones is down 2.13% and the Nasdaq is down 2.79%.
The mood on Friday was playful, and the VIX index, which measures market volatility, fell to its lowest level in a week.
With the sunlight washing over Wall Street, the ranking outcasts were at a party after days or weeks of working as a whipping boy in the market.
Thus, Roblox (+15.36%), Rivian (+9.88%), Snap (+8.70%), Netflix (+7.65%) or AMD (+9.26%) were found.
In this discount-hunting atmosphere, even the heavyweights of the ranking jumped, most notably Apple (up 3.19% to $147.11), which hit its lowest level in eight months the day before.
Even GameStop (+9.85%), Peloton (+16.52%) or Shopify (+13.85%) benefited from suction.
“Among the largest performances, we find + identical promotions + (“viral” promotions like GameStop) and low-quality promotions,” said Grigory Volokhin. “That means there are quite a few covers + shorts + and not enough yet to give the sign of a real bounce.”
Thus, in addition to buying cheap, the session will be fueled by hedging operations by speculative operators who, having bet on depreciation or indices (or “short”) in recent weeks, have taken up betting.
Tech also supported some good results, notably from e-commerce loan payments specialist Affirm (+31.43% to $23.71), whose quarterly turnover came in better than expected and its loss smaller than expected.
As for shared office specialist WeWork (+20.07% to $6.76), it cut its losses in the first quarter, and analysts at Piper Sandler estimated in a note that the group is approaching profitability.
Another take-off came with online brokerage platform Robinhood (up 24.88% to $10.69), which benefited from the announcement of a 7.6% stake in blockchain entrepreneur Sam Bankman-Fried.
Friday also marked a new episode in the Twitter saga, which was “temporarily” put on hold by Elon Musk. The entrepreneur says he wants to make sure that fake accounts are less than 5% of the total, according to the Blue Bird group.
After dropping in pre-opening electronic trading on Wall Street, the stock rose slightly but still fell 9.67% to $40.72, as confirmed by Elon Musk’s new tweet: “Still committed to this acquisition.”
Twitter is now worth 25% less than the price offered by Mr. Musk, which speaks to the doubts of many investors about the success of the operation.
Due to communicating vessels, Tesla shares, led by Elon Musk, offered growth (+5.71% to $769.59). The stock has lost over 23% in the previous six sessions.