Saturday, 20 May 2017

Stocks continue rebound, tech sector sees big inflows

Markets rose on Friday.

The S&P 500 rose 0.7 percent, the STOXX Europe 600 rose 0.6 percent and the Nikkei 225 rose 0.2 percent.

The S&P 500 ended the week down 0.4 percent but analysts remain hopeful that the downside is limited.

“This week political risk has caught up on the market but it’s still unclear whether it has any legs,” wrote Deutsche Bank strategist Jim Reid and research analyst Craig Nicol in a note on Friday.

“U.S. policy uncertainty is arguably greater than at any time since last November’s elections, but that should not entirely cloud what remains a generally supportive growth backdrop for equity markets, especially in the eurozone,” said Ian Williams, an economist and strategist at Peel Hunt.

The Nasdaq Composite rose 0.5 percent on Friday but fell 0.6 percent for the week.

This week's setback for technology stocks comes after a record-breaking run for the sector that has, according to Bank of America Merrill Lynch, seen money moved into the sector at a rate that, if it keeps up, would mark the biggest inflows to the space in 15 years.

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