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Nasdaq ends atop 16,000 mark for the first time on tech strength

The Nasdaq Composite Index (.IXIC) closed above 16,000 points for the first time on Friday, in its second-straight record finish powered by technology stocks, while pandemic jitters sent the Dow to its fourth losing session in the last five.

The Dow Jones Industrial Average (.DJI) fell 268.97 points, or 0.75%, to 35,601.98; the S&P 500 (.SPX) lost 6.58 points, or 0.14%, at 4,697.96; and the Nasdaq Composite

 (.IXIC) added 63.73 points, or 0.4%, to 16,057.44.

Both the Nasdaq and S&P 500 index (.SPX) scored a winning week, up 1.2% and 0.3% respectively, after last week's declines snapped a five-week run of higher finishes.

The Dow Jones Industrial Average's (.DJI) second-successive weekly loss - this one of 1.4% - wiped out the last of its November gains, extending the index's drop from a Nov. 8 record high to 2.3%.

Friday's fall was caused by banking, energy and airline stocks slumping on fears that European countries, battling a resurgence of COVID-19 cases, could follow Austria in moving towards a full lockdown.


Europe markets close lower; Austria stocks tumble 3% on new Covid lockdown

 

European markets closed lower on Friday, with investors rattled as countries impose strict measures to tackle the latest wave of Covid-19 infections.

The pan-European Stoxx 600 closed down by 0.3%, having started the day on a positive note. Europe’s banking index was among the worst performers, plunging 2.3% following comments from European Central Bank President Christine Lagarde.

The rapid spread of Covid in Europe is once again front and center, with multiple countries experiencing record daily caseloads, imposing partial lockdowns and tightening rules on the unvaccinated.

Germany on Thursday announced more restrictions for unvaccinated people as a fourth wave sent cases to a record, before Austria announced Friday that it will re-enter a full national lockdown.

Back in Europe, ECB President Lagarde on Friday reinforced her view that euro zone inflation will fade, and said the ECB should not look to tighten monetary policy as it could hamper the bloc’s recovery.

As well as taking some of the wind out of the stock market’s sails, Lagarde’s comments and the news of new Covid restrictions dented the euro gave up 0.5% to the dollar.

 

Reference: Reuters, CNBC