The S&P 500 and Nasdaq rose to record highs Friday as investors rotated their holdings. They sold big name tech stocks and bought energy, financial and materials stocks. Investors are betting those cyclical stocks will benefit as the economy reopens with new fiscal aid from Washington.
A Reuters poll showed the U.S. economy is expected to reach pre-pandemic level within a year but likely to take more than a year for the jobs market to fully recover.
WealthWise Financial CEO Loreen Gilbert says this low-volatility week provides an opportune time for investors to rebalance their holdings.
“I always tell investors this is the kind of week where you want to go ahead and make changes in your portfolio when we’re not seeing huge movements. It is in a sense a better time to reallocate to get your positioning right for the rest of the year, so take this opportunity to rebalance.”
The S&P and Nasdaq ended Friday a half percent higher. The Dow finished flat. For the week, the indexes made modest gains.
Shares of PayPal rose almost 5%. Several analysts raised their price targets on the payment processor one day after the company’s investor day call.
Investors took profit on Disney after the Mouse House surprised Wall Street by producing a quarterly profit. Its shares had risen more than 13% in the last two weeks ahead of its earnings announcement.
Investors showed Bumble more love the day after the dating app operator debuted on the Nasdaq. Shares tacked on another 7%.
The markets will be closed Monday for the Presidents Day holiday.