This year’s price action is beginning to resemble the surge from 2021 thanks to a market rally on Friday that was reinforced by sharp rises in a few damaged and bruised technology stocks that struggled last year.
On Friday, beaten-down stocks like Tesla (TSLA), Carvana (CVNA), and Coinbase (COIN) all saw gains of over 10%.
The high-flying technology bellwether ARK Innovation (ARKK) ETF, managed by Cathie Wood, increased 5.5%. According to Reuters, ARKK has increased by more than 25% just this month alone, putting the fund on track to post its highest monthly gain ever.
On Friday, there was even talk of a little meme trading.
After learning that the media behemoth planned to extensively rely on AI to produce content, shares of BuzzFeed (BZFD) soared as much as 150% by lunchtime. On Friday, shares rose 85%.
That represents a significant turn around for the business, which has seen its value drop by almost three-fourths since going public through a SPAC combination in late 2021.
GameStop (GME), a favourite among Reddit traders, increased 14% to end a tumultuous session.
Additionally, Lucid Group (LCID), a producer of electric vehicles famous for its massive SPAC merger in 2021, rose 43%.
Tesla, which experienced its worst year ever in 2022 and lost 65% of its value, increased 11% on Friday. Tesla’s annual growth rate is 44%.
After Tesla’s quarterly results exceeded expectations and the firm informed investors that it would start producing its Cybertruck later this year, the stock has risen this week.
On January 27, 2023, Tesla CEO Elon Musk and his security detail leave the company’s regional headquarters in Washington, United States.
Even with everything the Federal Reserve has done over the past year, David Trainer, CEO of investing analysis firm New Constructs, told Yahoo Finance on Friday that the recent rebound in meme stocks and loss-making tech stocks is a headfake.
The risk-on atmosphere on Wall Street is a result of investors’ expectations that the Federal Reserve will halt its cycle of rate increases earlier than predicted as a result of weakening economic indicators. At its meeting the following week, the U.S. central bank is anticipated to slow the rate of interest rate increases to 25 basis points.
The movements on Friday are part of a larger upward trend that has been seen in all three indexes to start the year.
With a 9% rise so far this year, the tech-heavy Nasdaq Composite, which lost a third of its value in 2022, is in the lead.
