Technical stocks escape the correction area

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Technology stocks offered a correction of the “corrections” on Friday, as the recent decline in the

Nasdaq Compound

extended to more than 10%. At the worst level of the session’s index, it fell 11.9% from 12 February to 14,095.47. But the Nasdaq climbed back into the green in the middle of the afternoon.

Even after the huge losses this morning, technology stocks are up about 4% for the week and about 1% for the year to date, under pressure from rising interest rates and the exchange of technology stocks and to more economically sensitive sectors such as energy. industries and finance. Treasury yields for ten years are slightly higher at 1.56%, but obscured the 1.6% level earlier in Friday’s session.

The market continues to face particularly severe penalties for the stocks that took the lead in 2020 – high-multiple, high-growth, as well as newly public cloud stocks. The

ARK Innovation ETF

(ARKK), a popular exchange traded fund with large positions in recent high suppliers such as Tesla (TSLA),

Roku (ROKU)

and Teledoc (RDOC), are 2.4% lower than the session and 26% lower than the mid-February high.

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The release of the index on Friday was a flurry of bullish recommendations on old-fashioned technology stocks.

Oracle

(ORCL) trades sharply higher on a Barclays upgrade,

JP Morgan

clumsily turned on

Cisco

(CSCO), Goldman raises its rating

Western Digital

(WDC) and

Morgan Stanley

stomp the table

Microsoft

(MSFT). Analysts are increasingly focusing on the potential for technical hardware and software stocks for businesses to get a boost from an expected increase in spending later this year. All four stocks traded higher.

Cloud stock has become mixed, but many multiple names like

Palantir

Technologies (PLTR),

C3.

ai (AI),

Snowflake (SNOW),

Zoom video communication

(ZOOM), and

Shopify

(SHOP) everyone stays in the red during the session. Chip stocks are mostly higher as investors look for ways to play ongoing supply constraints, with so-called ‘e-tail’ stocks spreading recent losses as the market expects a reopening of the economy later this year.

Around the middle of the session, the Nasdaq Composite recovered its past losses and sits near the flat line at 12,736.66. This is about 50 points above the correction area.

Write to Eric J. Savitz at [email protected]