Bad Omen? $Nasdaq100 Bull 3X ETF(TQQQ)$
It was a day of snapped streaks. The S&P 500 gained ground Friday, though barely, to end its four-day losing streak. The Nasdaq Composite rose slightly to end its five-day slide.
The day's gains weren't enough to put the indexes in positive territory for the week, though, thus bringing an end to the impressive nine-week winning streak for the S&P 500, Nasdaq, and Dow Jones Industrial Average. Over those nine weeks, the indexes were up an average of 17%. This week, they gave back between 0.6% (for the Dow) and 3.2% (for the Nasdaq).
The week's losses came as investors seemed to reassess their portfolios and the massive gains they got from growth stocks in 2023. That meant larger losses for tech stocks (Apple fell 5.9% on the week) and gains for more beaten-up defensive names (Verizon gained 6.6%). How long this rotation lasts will be the story for next week, especially with earnings season getting under way on Friday when the big U.S. banks begin sharing their quarterly results.
More inflation data will also be closely watched, with the December consumer price index due out on Thursday. Economists expect the CPI to increase 3.2% year over year, one-tenth of a percentage point more than in November.
It's worth noting that the market took a relatively strong -- and potentially inflationary -- jobs report in stride today. The U.S. economy added 216,000 jobs in December, beating economists' estimate for 160,000 new jobs. While stocks initially fell in pre-market trading, they rallied in the morning before ending the day roughly flat.
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