The Nasdaq-100 fell 3.1 percent between Friday, August 28, and Friday, September 4. The SPDR Technology ETF (XLK) declined 4.1 percent. Both were the biggest weekly drops since the coronavirus selloff reached a climax in mid-March.
Ever heard of Pinduoduo? GSX Techedu, or Bilibili? They’re among a handful of technology stocks breaking out to new highs as investors embrace China’s flourishing digital economy.
The SPDR Utilities ETF (XLU) is up 2.5 percent in the last week, while the broader S&P 500 is down almost 2 percent. Aside from real-estate investment trusts, utilities are the only major sector with a positive return over that time frame.
Cisco Systems (CSCO), Take-Two Interactive Software (TTWO) and Booking (BKNG), and JD.com (JD) all rallied after reporting quarterly numbers. Some beat consensus, others lagged. Regardless, investors found something to like.
In the last week, companies like Walt Disney (DIS), Allergan (AGN), Electronic Arts (EA) and KLA Tencor (KLAC) beat estimates, only to drift or fall. The tepid response comes amid fears about a renewed trade war with China, plus buyer fatigue after four months of solid gains.