A market rally On Friday, a break higher in some battered and bruised tech stocks that weakened last year highlighted that this year’s price action looks very similar to the 2021 rally.
Beaten names including Tesla (TSLA), caravan (CVNA) and Coinbase (CORNER) each rose more than 10% on Friday.
Cathie Wood’s ARK Innovation (ARKK) ETF, the call for high-flying technology, advanced 5.5%. ARKK has gained over 25% this month alone, which is Reuters notes pacing the fund for its best monthly return on record.
A mini meme trade was also in the works on Friday.
BuzzFeed shares (BZFD) rose to 150% in the afternoon an internal memo revealed what the media giant was planning leaning heavily on AI for content creation. Shares rose 85% on Friday.
It represents a major turnaround for a company that has lost three-quarters of its value since going public in late 2021 through a SPAC combination.
Reddit trader’s favorite GameStop (GME) rose 14% to a volatile session.
And Lucid Group (LCID), the electric car maker known for its mega SPAC merger in 2021, is up 43%.
Tesla, which has erased 65% of its value in 2022 in its worst year in history, rose 11% on Friday. Tesla is up 44% over the year.
This week’s stock market rally comes later Tesla’s quarterly results beat expectationsthe company told investors it plans to begin production of the Cybertruck later this year.
“The recent rally in mem stocks and unprofitable tech stocks is bogus, and despite everything the Federal Reserve has done over the past year, there’s still a lot of capital in the system,” David Trainer, CEO of investment research firm New Construcs, told Yahoo Finance on Friday.
Wall Street’s risk-on sentiment is fueled by investors speculating that moderate economic data will prompt the Federal Reserve to end its rate hike cycle sooner than expected. The US Central Bank is expected to cut interest rates by 25 basis points at its meeting next week.
Friday’s moves come in tandem with a broader push in the major stock averages, with all three indexes higher to start the year.
The tech-heavy Nasdaq Composite, which has lost a third of its value in 2022, leads the way with a 9% gain so far this year.
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Alexandra Semenova is a correspondent for Yahoo Finance. Follow him on Twitter @alexandraandnyc
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