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S&P 500 Ends Week in Green as Apple Leads Tech Resurgence

Stock MarketsJan 28, 2022 04:04PM ET
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© Reuters.

By Yasin Ebrahim

Investing.com – The S&P 500 delivered a weekly win Friday, as an Apple-led resurgence in tech helped the broader market recover losses from earlier this week when the Federal Reserve signaled a steeper pace of rate hikes. 

The S&P 500 rose 2.4%, the Dow Jones Industrial Average gained 1.7%, or 565 points, the Nasdaq jumped 3.1%.

Apple (NASDAQ:AAPL) jumped 7% after reporting quarterly results that topped analysts’ estimates following better-than-expected iPhone sales despite a drag from supply-chain issues.

The tech giant also said it expected supply-chain problems to improve, boosting sentiment on broader tech stocks.

“[Tim] Cook is calling out some supply chain improvement for the March quarter which are ‘calming words heard around the tech world’ and much needed good news in what has been a market storm to start 2022,” Wedbush said in a note.

Facebook (NASDAQ:FB), Google-parent Alphabet (NASDAQ:GOOGL) Amazon (NASDAQ:AMZN), and Microsoft  (NASDAQ:MSFT) ended the day up more than 1%. 

As well as bullish earnings, tech was also helped by a fall in U.S. bond yields following economic data showing inflation continues to gather steam at a time when the consumer has pulled back on spending.

Consumer spending fell 0.6% in December, representing the largest monthly decline since February. The slowdown in spending, however, was largely attributed to the impact of the Omicron variant.

“Spending was hit hard by a combination of the Omicron hit to discretionary services and people’s willingness to visit malls, alongside a void left by earlier-than-usual holiday shopping, triggered by fears of shortages of popular items,” according to Pantheon Macroeconomics.

The core personal consumption expenditures price index, the Fed's preferred gauge of inflation, rose by 4.9% the fastest pace since 1983.

Visa (NYSE:V) was also a big gainer on the day, up above 10%, after delivering fiscal first-quarter earnings and revenue that topped Wall Street estimates as stronger cross border payment volumes bolstered growth.

“After sentiment shifted away from established payment companies, Visa’s relative valuation/growth presents a significant buying opportunity for investors focused on sustainable growth,” Oppenheimer said in a note.

Robinhood Markets (NASDAQ:HOOD), meanwhile, delivered disappointing guidance on revenue for its fiscal first-quarter after users fell in the fourth quarter, but the shares of the trading platform pared losses to close more than 9% higher.  

Energy proved an exception to the rally, weighed down by a more than 3% decline in Chevron (NYSE:CVX) after the oil major reported quarterly results that missed on the bottom line.

Caterpillar (NYSE:CAT), a Dow index bellwether, was also nursing losses of more than 6% as better-than-expected quarterly results were overshadowed by a fall in margins as supply-chain woes drove up costs.

S&P 500 Ends Week in Green as Apple Leads Tech Resurgence
 

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Comments (16)
Ralph Patrick
Ralph Patrick Jan 29, 2022 12:44PM ET
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If they don't crash the market asap, midterms will be completely lost over inflation. The common person cares nothing about stonkers but hates inflation.
Tyler Munro
Tyler Munro Jan 28, 2022 9:42PM ET
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the FED didn't signal the steeper hikes.. Powell said quite clearly that he's allowing you idio+s to price it in.. market analysts speculating has ultimately CAUSED the FED to increase the hikes..
Chad RicherThanYou
Chad RicherThanYou Jan 28, 2022 8:14PM ET
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Hyperinflation is coming
Mohamed Khalid
Mohamed Khalid Jan 28, 2022 6:50PM ET
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Reply
Critical Riff
Critical Riff Jan 28, 2022 5:43PM ET
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The gap between 14340 and 14400 has finally been filled since gapping up past it on 21 June 2021. Now that it's also closed below the 50 MA for the second week in a row on the weekly, the trend can resume it's course
Mat Mat
Mat Mat Jan 28, 2022 5:29PM ET
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Yep, they will sell it and take the profits after Friday 7% from 1000 USD its nothing but 7% as example from 10 mln USD it is a great profit for one day ;)
Fluid Capital Investments
Fluid Capital Investments Jan 28, 2022 5:12PM ET
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the market will go lower. the fact the market is doing so well is Powells reason for possibly doing 7 rate hikes. Bearish have some of the most rip your face off rallies.
AY Haych
AY Haych Jan 28, 2022 5:06PM ET
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Nice. We did it.
Stan Smith
Stan Smith Jan 28, 2022 4:56PM ET
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Another Green Miracle Halleluiah for free markets based on real productivity and a sound GDP ..lol
patricio Silva
patricio Silva Jan 28, 2022 4:53PM ET
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Wheres apocalipse prophets?? Count loss
 
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