A market rally on Friday, punctuated by bullish rips in some battered and bruised tech stocks that faltered last year, make this year’s price action look a lot like 2021’s rally.
Defeated names including Tesla (TSLA), Carvana (CVNA) and Coinbase (CURRENCY) were each up more than 10% on Friday.
ARK Innovation by Cathie Wood (ARKK) The ETF, the benchmark for high-flying technology, rose 5.5%. ARKK has gained more than 25% this month alone, which Reuters notes puts the fund at the pace of its best monthly gain on record.
A mini meme swap was also in the works on Friday.
BuzzFeed Actions (BZFD) shot up to 150% after noon An internal memo revealed that the media giant was planning rely heavily on AI to generate content. Shares closed up 85% on Friday.
That marks a big turnaround for the company, which has lost around three-quarters of its value since going public via a SPAC combination in late 2021.
Reddit Trader Favorite GameStop (GME) rose 14% to cap a volatile session.
And Lucid Group (LCID), an electric vehicle maker known for its SPAC mega merger in 2021, rose 43%.
Tesla, which shed 65% of its value in 2022 in its worst year on record, rallied 11% on Friday. For the year, Tesla is up 44%.
This week’s rally in stocks also comes after Tesla’s quarterly results beat expectationsand the company tells investors it plans to start production of its Cybertruck later this year.
“The recent rally in meme stocks and tech stocks with no gains is a hoax and there is still a lot of excess capital in the system, even with everything the Federal Reserve has done over the past year,” said David Trainer, director executive at investment research firm New Constructs, told Yahoo Finance on Friday.
Wall Street’s risk-on mood comes as investors speculate that dovish economic data will prompt the Federal Reserve to end its rate-raising cycle earlier than expected. The US central bank is expected to reduce its pace of interest rate hikes to 25 basis points at its meeting next week.
Friday’s moves come alongside broader momentum in the major stock averages that have the three highest indices to start the year.
The tech-heavy Nasdaq Composite, which lost a third of its value in 2022, leads the way with a 9% year-to-date gain.
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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