A market rally on Friday accentuated by rips higher in some battered and bruised tech stocks that faltered last year are making this year’s price action look a lot like the 2021 rally.
Losing names including Tesla (TSLA), Carvana (CVNA) and Coinbase (COIN) each rose more than 10% on Friday.
Cathie Wood’s ARK Innovation ETF (ARKK), a benchmark for high-flying technology, advanced 5.5%. ARKK has gained more than 25% this month alone, which according to Reuters puts the fund on pace with its best monthly gain on record.
A mini meme swap was also underway on Friday.
Shares of BuzzFeed (BZFD) skyrocketed as much as 150% as of midday after an internal memo revealed the media giant was planning to lean heavily on AI to generate content. Shares closed 85% up on Friday.
That marks a major turnaround for the company, which has lost about three-quarters of its value since going public through a SPAC combination in late 2021.
Reddit traders’ favorite GameStop (GME) jumped 14% to close a volatile session.
And Lucid Group (LCID), an EV maker known for its SPAC mega merger in 2021, was up 43%.
Tesla, which wiped out 65% of its value in 2022 for its worst year on record, rallied 11% on Friday. For the year, Tesla is up 44%.
The stock’s rally this week also comes after Tesla’s quarterly results beat expectations, with the company telling investors it expects to begin production of its Cybertruck later this year.
“The recent rally in meme stocks and profitless tech stocks is faked and there is still a lot of excess capital in the system, even with everything the Federal Reserve has done in the last year,” David Trainer, CEO of the company investment researcher New Constructi, he told Yahoo Finance on Friday.
Wall Street’s risk-prone mood comes as investors speculate that moderating economic data will prompt the Federal Reserve to end its rate-hiking cycle sooner than expected. The US central bank is expected to cut the pace of interest rate hikes to 25 basis points at next week’s meeting.
Friday’s moves come in tandem with a broader upward push across major stock averages that has all three indexes higher to start the year.
The tech-heavy Nasdaq Composite, which lost a third of its value in 2022, is leading the way with a 9% gain so far this year.
Alexandra Semenova is a reporter at Yahoo Finance. Follow her on Twitter @alexandraandnyc
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