Tesla and ARKK increase when the energy in 2021 returns to the stock market in 2023
A market rally on Friday accentuated by scratches higher in some battered and bruised tech stocks that faltered last year is making this year’s price action look a lot like the 2021 rally.
Declined names including Tesla (TSLA), Carvana (CVNA) and Coinbase (COIN) were each up more than 10% on Friday.
The Cathie Woods ARK Innovation ( ARKK ) ETF, a watch for high-flying technology, rose 5.5%. ARKK is up more than 25% this month alone, which Reuters notes means the fund is on pace for its best monthly gain ever.
A mini meme trade was also underway on Friday.
Shares of BuzzFeed ( BZFD ) shot up as much as 1[ads1]50% mid-day after an internal memo showed the media giant planned to lean heavily into AI to generate content. Shares closed up 85 percent on Friday.
It marks a major turnaround for the company, which has lost roughly three-quarters of its value since going public through a SPAC combination in late 2021.
Reddit trader favorite GameStop ( GME ) rose 14% to cap a volatile session.
And Lucid Group ( LCID ), an electric vehicle maker known for its mega SPAC merger in 2021, rose 43%.
Tesla, which wiped out 65% of its value in 2022 for its worst year ever, rose 11% on Friday. For the year, Tesla is up 44%.
The stock’s rally this week also comes after Tesla’s quarterly results beat expectations and the company told investors it plans to start production of the Cybertruck later this year.
“The recent rally in meme stocks and profitable tech stocks is a head-scratcher, and there is still plenty of excess capital in the system, even with everything the Federal Reserve has done over the past year,” David Trainer, CEO of investment research firm New Constructs, told Yahoo Finance Friday.
Wall Street’s risk-on sentiment comes as investors speculate that moderating economic data will prompt the Federal Reserve to end its rate hike cycle sooner than expected. The US central bank is expected to reduce the pace of interest rate increases to 25 basis points at its meeting next week.
Friday’s move comes in tandem with a broader push higher across the major stock averages that have all three indexes higher to start the year.
The tech-heavy Nasdaq Composite, which 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 reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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