US stock indexes closed higher on Friday, with technology shares rebounding after a sell-off in the prior session that had been tied to rising US government bond yields. The Nasdaq Composite rose 0.64 percent to close at 27,366.17, the S&P 500 added 0.59 percent to finish at 7,811.54, and the Dow Jones Industrial Average gained 423.31 points, or 0.83 percent, to end at 51,654.95. By MacroHerald’s own measurement, the S&P 500’s close on 9 October left it near its 31-day high.
Tech names lead gains
Palo Alto Networks and Palantir Technologies each rose 5 percent, CrowdStrike gained 4 percent, Amazon added 3 percent and Microsoft rose 2 percent. Merck and Gilead Sciences each gained more than 2 percent. SpaceX shares rose 1 percent after the company announced an agreement to buy a spectrum portfolio covering the entire United States, a deal that weighed on telecom shares: AT&T, Verizon and T-Mobile all fell on concern about increased competition.
Adam Crisafulli of Vital Knowledge said stock selling reflected extreme imbalances in investment positions that, in his view, still needed further correction. He said AI-related technology stocks were therefore unlikely to recover sharply in a V-shape right away. Over the week, the Nasdaq rose 0.6 percent, the Dow gained 0.9 percent, and the S&P 500 added about 1.2 percent.
Earnings season and Iran risk
Quarterly earnings season opened this week. Johnson & Johnson and UnitedHealth are scheduled to report on Tuesday, alongside Wells Fargo and Citigroup. Trump said this week that the United States would not attack Iran before the midterm elections scheduled for early next month.
Michael Monaghan of Founder ETFs said a more violent war, more intense militarily and spreading to involve more border regions in the Middle East, had not yet been reflected in market prices. By MacroHerald’s own measurement, Germany’s DAX closed up 1.13 percent on 9 October, at 25,087.27 points.
Related: Wall Street rises as SpaceX shares gain and telecom stocks fall · Wall Street opens lower on rising oil and Iran concerns
Data: S&P Dow Jones Indices · Nasdaq · Deutsche Börse
