Nasdaq ends uneven week increased as Amazon positive aspects stall tech routine

©Reuters. FILE PHOTO: A "Wall St" sign is seen above two "One Way" signs in New York August 24, 2015. REUTERS/Lucas Jackson/File Photo

By David French and Bansari Mayur Kamdar

(Reuters) – Another bumpy ride on Wall Street ended on Friday as Amazon's positive gains capped a series of mixed big-tech numbers, with the Nasdaq recouping much of its losses from the previous session and all three benchmarks the ended week in positive territory.

Results from megacap growth stocks have dictated market moves this week as investors look for tangible data to support sky-high valuations. Inc (NASDAQ:) rose 13.5% after reporting robust earnings during the holiday quarter. The win added about $190 billion to its market cap, the largest single-day increase in value by a U.S. company.

This comes a day after Facebook owner Meta Platforms Inc's disappointing results rattled markets, removing more than $200 billion from its valuation, the largest loss in stock market value in the history of a US company.

"These are staggering, stomach-crunching moves normally associated with penny stocks, yet they're happening in billion-dollar market capitalization companies," said Michael Hewson, Chief Market Analyst at CMC Markets UK.

Despite the earnings-driven whiplash in technology stocks, all three major stock indices ended their first week of February higher, with the indices posting their second consecutive week of gains.

While Meta shed another 0.3% on Friday, other social media companies that had been dragged down along with the owner of Facebook (NASDAQ:) rallied strongly as they posted their own earnings that beat estimates .

was among them snap inc (NYSE:) and surged 58.8% after reporting better-than-expected user growth and fourth-quarter prospects.

Pinterest (NYSE:) Inc was also up 11.2% after beating its quarterly sales estimates as retailers advertised heavily during the holiday quarter.

The fell 21.42 points, or 0.06%, to 35,089.74, the rose 23.09 points, or 0.52%, to 4,500.53, and the added 219.19 points, or 1.58%, to 14,098.01 .

Among the major S&P 500 sectors that gained, energy stocks hit their highest since 2018, when crude oil prices hit a seven-year high. (OR)

Hess Corp (NYSE:) was the sector's biggest gainer, rising 4% to its highest closing level since September 2014. Occidental Petroleum Corp (NYSE:) was up 2%, with its shares closing at levels last seen in February 2020 would.

However, consumer discretionary was the leading sector, up 3.7% as it was supported by the performance of Amazon. The tech giant's gains helped mitigate burdens on Ford Motor (NYSE:) Co, which fell 9.7% after the automaker released disappointing quarterly earnings.

The Labor Department's closely-watched jobs report showed that nonfarm payrolls rose by 467,000 jobs last month, compared with the 150,000 job increase forecast by economists polled by Reuters.

December data has been revised upwards to show 510,000 jobs created instead of the 199,000 previously reported.

Fears of faster-than-expected interest rate hikes to stem a surge in inflation have plagued markets since the start of the year, with growth stocks like tech taking the brunt as investors switch to cash flow betting on future expectations.

"A lot of the highly valued stuff will continue to struggle and has already been badly hit," said Louis Ricci, trading director at Emles Advisors.

"For us, this jobs report was confirmation that stocks are going to be jumpy and there will be a lot of volatility."

However, the prospect of a rate hike has buoyed US Treasuries, with benchmark 10-year yields hitting their highest levels since December 2019 amid payrolls data. This is seen as positive for financials, with Bank of America Corp (NYSE:) MorganStanley (NYSE:) and Wells Fargo (NYSE:) & Co gained between 1.8% and 4% on Friday.

Volume on US exchanges was 11.07 billion shares compared to the average of 12.37 billion for the entire session over the last 20 trading days.

The S&P 500 posted 26 new 52-week highs and 11 new lows; the Nasdaq Composite posted 36 new highs and 196 new lows.

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