This post was originally published on this site
Investing.com – The S&P 500 closed higher Friday, but snapped a five-week win streak after worries about inflation spiraling out of control sparked a sell-off earlier in the week.
The S&P 500 rose 0.72%, the Dow Jones Industrial Average added 0.50%, or 178 points, the Nasdaq climbed 1%.
Technology stocks were pushed higher by big tech as Meta Platforms (NASDAQ:FB), formerly known as Facebook, and Alphabet Inc Class A (NASDAQ:GOOGL), parent of Google, rose more than 4% and 2%, respectively.
As well as a rise in big tech, semiconductor stocks supported the broader tech sector, as Micron Technology (NASDAQ:MU) and ASML (NASDAQ:ASML) racked up gains.
Nvidia Corporation (NASDAQ:NVDA), however, was underperforming the broader chip sector after Wedbush downgraded it to neutral from outperform, citing valuation concerns
“[W]hile we remain very bullish on both NVDA’s near term prospects and longer term opportunities … we simply find ourselves unable to justify lifting our multiple to levels that would continue to justify an outperform and as such we are shifting to a neutral rating even as our target price lifts to $300 (from $220),” Wedbush said in a note.
Energy turned red as oil prices slipped and are set for weekly drop amid concerns about the demand outlook following Covid-led lockdowns in Europe.
In health care, Johnson & Johnson (NYSE:JNJ) was in the spotlight after announcing plans to spin off its consumer health business into a separate company. Its shares climbed more than 1%.
Blink Charging (NASDAQ:BLNK), meanwhile, jumped more than 12% after reporting revenue that topped Wall Street expectations.
Lordstown Motors (NASDAQ:RIDE) reported a narrower third-quarter loss than expected, and pushed back its timeline on new production, triggering a slew of downgrades from Wall Street. Its shares fell more than 17%.
“While we continue to like the longer-term prospects for the Endurance to carve out a slice of the commercial EV pickup truck market, with production being pushed back another few quarters we downgrade RIDE to Neutral,” BTIG said in a note.
U.S. Treasury yields, which have cooled their recent jolt higher, recovered some losses following data showing consumer sentiment fell amid worries about elevated inflation.
The University of Michigan Consumer Sentiment index fell to 66.8 from 71.7 in the preliminary November survey, the weakest reading since November 2011. Economists, however, were quick to downplay a potential fall in consumer spending.
“We would be surprised if this dip in confidence is followed by softening spending, which ultimately is what matters. Households are awash with cash, in aggregate, and their net balance wealth has surged since Covid began.” Pantheon Macroeconomics said.
