Tech stocks gained on Friday while others ended in the red
Stock markets fluctuated on Friday. The Stoxx Europe 600 Index dropped down by 0.8%. The MSCI Asia Pacific Index also shaved off 0.2%, and the MSCI Emerging Market Index tumbled down by 0.5%. However, the S&P 500 Index soared by 0.4%.
Tech stocks boosted U.S. equity indexes higher. Investors weighed the impact of tougher Covid-19 restrictions on economic growth versus the outlook for widespread vaccine distribution within months. It seems the stay-at-home trade gained more appeal in the process.
Advances for Adobe Inc., Microsoft Corp., and Amazon.com Inc. rallied the Nasdaq 100. Meanwhile, Tesla Inc. skyrocketed to a record as traders bet that electric cars will dominate the global car market in decades ahead. The S&P 500 Index also climbed higher. Despite that, it underperformed the tech-heavy gauge as investors searched for shares of companies with more potential during lockdowns.
Gold tumbled down for a fourth day due to a decline in bullion-backed exchange-traded funds. Treasury yields also plummeted down, and the U.S. dollar plunged after U.S. weekly jobless claims came in higher than expected.
Strategists think there may not be an upside for Europe stocks during this year
In Europe, cyclical shares plummeted down along with other stocks. Norwegian Air Shuttle ASA collapsed by 16% after attempting to seek protection from creditors due to the travel upheaval caused by the coronavirus pandemic.
The bullish fever boosted the MSCI World Index to an all-time high on Monday, but it has softened over the week. Coronavirus cases are rising around the world, with public health facilities failing to satisfy growing demand.
New York City also issued that it will close schools. In Tokyo, the Covid-19 alert was raised to the highest levels as daily cases surpassed 500 for the first time. South Australia announced one of the strictest lockdowns in the world, banning even outdoor exercise and dog-walking.
Meanwhile, investors are struggling to determine how long and how severe the Covid-19 pandemic will be in the months ahead. As businesses struggle under lockdowns, economic stress is reaching new heights, but at the same time, scientists are rapidly advancing several vaccine candidates.
Chris Gaffney, president of world markets at TIAA Bank, stated that there’s the push-pull of short-term versus long-term. However, he cautioned that there are some serious risks in the short term, specifically with the lockdowns.
In Asia, the MSCI Pacific Index plummeted down for the first time in two weeks after the longest winning run since 1988. Bitcoin steadied after skyrocketing past $18,000 on Wednesday and commodities plunged low.
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