Dow and S&P 500 rise Friday but are on track for a losing week, Nasdaq jumps 2%

The Nasdaq Composite jumped on Friday, as investors tried to hang on to the January rally and earnings reports continued to trickle in.

The tech-focused Nasdaq rose 2%, with help from Netflix and Alphabet. The S&P 500 advanced 1.3% and the Dow Jones Industrial Average added 213 points, or 0.7%. Both indexes were poised to snap a three-day losing streak. All of the major averages are still in positive territory for the year.

For the week, the Nasdaq is heading for a 0.5% gain. Meanwhile, the Dow is down more than 2% and the S&P 500 is down 1.5%.

“We’re having a more emotional reaction that expected,” KKM Financial founder Jeff Kilburg said. “A lot of people got so pessimistic and we saw parabolic moves to kick off the year. Now, as expected, the markets aren’t going in a straight line.”

“We are finding a way to continue to move and have higher lows,” he added. “The higher lows put a little bit of confidence in the bulls. However, the technicals are still favoring the bears and selling rallies.”

Mega cap tech shares led the market higher. Netflix gained 7% after posting more subscribers than expected even though its quarterly earnings missed analysts’ estimates. Alphabet rose 5% after the company announced it will lay off 12,000 employees.

“You’re seeing more weight go into some of the beat up technology and because people are becoming a little bit more thoughtful of opportunity in the absolute tech wreck we saw in 2022,” Kilburg said.