Banks, growth stocks up on volatile trading day

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Banks, growth stocks up on volatile trading day

On Friday, banks and megacap growth shares gained on the last day of a week with market volatility due to concerns about the impact of higher inflation and subsequent rate hikes to tame it.

In the premarket trading, Google owner-Alphabet Inc, Apple Inc, Meta Platforms, Microsoft Corp, Amazon.com and Tesla Inc gained between 1.1% and 1.8%.

Citigroup added 1.2% to lead gains among the big banks.

All major indexes ended lower on Thursday, posting their second consecutive session of losses, dragged down by shares of Apple and network gear maker Cisco Systems.

Retailers including Target Inc. and Walmart Inc. have rattled market sentiment this week, adding to evidence that rising prices have hurt the purchasing power of U.S. consumers.

The S&P 500 and the Nasdaq are tracking their seventh week of losses, their longest losing streak since 2001, while the Dow is set for its eighth weekly decline since 1932, its longest since 1932.

The indexes have fallen between 14.0% and 27.2% this year as investors adjust to prolonged supply chain snarls, COVID 19 lockdowns in China, geopolitical uncertainty stemming from the Ukraine conflict and the U.S. Federal Reserve raising rates.

In June and July, Traders are pricing in 50 basis point interest rate hikes by the U.S. central bank.

The benchmark index is down 18.7% from Jan. 3. The S&P 500 has been in a bear market since hitting that peak, as a result of a 20% or more below that level.

The Dow e-minis were up 240 points or 0.77%, S&P 500 e-minis were up 37.5 points, or 0.96%, and Nasdaq 100 e-minis were up 155.5 points, or 1.31%, according to ET.

Asian and European shares rebounded on Friday after China cut a key lending benchmark to support its economy.

Ross Stores plunged 26.4% after the discount apparel retailer cut its 2022 forecasts for sales and profit.