US Stocks Rebound: Tech Shares Lead the Charge with 7% Gain in Micron Technology (Investor's Guide)

The US stock market ended the week on a high note, with a strong rebound in tech shares leading the charge. Despite a rocky start to the week, the market closed higher on Friday, with megacaps like Micron Technology and Nvidia making significant gains. Micron Technology, in particular, reached a record closing high on Friday, ending the day up 7%.

What's Behind the Rebound?

The rebound in tech shares can be attributed to a combination of factors, including strong forecasts from Micron Technology and a review by the US government that could allow Nvidia to ship its AI chips to China. Additionally, Oracle jumped 6.6% after TikTok's Chinese owner, ByteDance, signed agreements to hand control of the short-form video app's US operations to a group of investors, including the cloud computing giant.

Market Performance

The Dow Jones Industrial Average rose 183.04 points, or 0.38%, to 48,134.89, while the S&P 500 gained 59.74 points, or 0.88%, to 6,834.50. The Nasdaq Composite also gained 301.26 points, or 1.31%, to 23,307.62. For the week, the S&P 500 gained 0.11% and the Nasdaq rose 0.48%, while the Dow fell 0.67%.

Sectors and Stocks

Seven of the S&P 500 sectors closed higher on Friday, with technology and healthcare leading the charge. However, utilities and consumer staples stocks lost 1.34% and 0.49%, respectively. In consumer names, Nike shares slumped 10.5% after the sportswear giant reported a drop in gross margins for the second consecutive quarter. Lamb Weston and Conagra also fell sharply, with declines of 26% and 2.5%, respectively.

Outlook and Insights

Analysts warn of higher volatility in the market due to the triple witching effect, which is the quarterly, simultaneous expiration of stock options, stock index futures, and stock index options contracts. However, the oversold bounce and options expiration could help clear out some positions and lead to a more stable market. Remember, this is just a perspective, not a prediction, and investors should do their own research before making any decisions.

Key Takeaways

• Tech shares led the charge in the US stock market rebound, with Micron Technology and Nvidia making significant gains.
• The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closed higher on Friday.
• Seven of the S&P 500 sectors closed higher, with technology and healthcare leading the charge.
• Investors should be aware of the potential for higher volatility in the market due to the triple witching effect.