Stock market today: Dow snaps 4

By Yasin Ebrahim

-- The Futures exchange and foreign exchange dealersDow rallied Friday, snapping a four-week losing streak as growth stocks including tech fought back from their selloff after Treasury yields eased from more than a decade highs.

The added 1.2%, or 386 points, closing the week 1.7% higher. The was up 2%. The gained 1.6%.

The moved back below the key 4% level after recently hitting its highest level since 2010. The retreat in yields comes even as data showing an expected return to growth in U.S. activity for the first time in eight months suggested the economy remains resilient enough to withstand further rate hikes.

The recent string of strong economic data has forced investors to rethink how much more Fed tightening is needed to materially slow the economy. Markets are now forecasting the Fed to lift rates to a terminal rate as high as 5.46%, well above the 4.95% level seen at the end of last year, Stifel said in a note.

Still, with the Fed closing in on the end of its rate-hike cycle, some on Wall Street believe the trend for the year is higher and pullbacks in the broader market are a buying opportunity.

"For long term investors, the recent pullbacks are buying opportunities," Jimmy Lee, Founder and CEO of The Wealth Consulting Group, told 's Yasin Ebrahim in an interview earlier this week.

"The main point that investors need to understand is that the fed is going to stop raising rates probably before the summer starts," Lee added. "And if that happens, I think that a lot of late money will come into the market."

Growth sectors of the economy including consumer discretionary and tech, both of which are vulnerable to rising rates, were bolstered by the fall in Treasury yields.

Tesla (NASDAQ:) was the biggest gainer in consumer stocks, up 3.6%, following data showing that demand in China rose after the electric vehicle maker cut prices.

Tesla’s monthly sales climbed 13% to 74,402 vehicles in February, according to preliminary data from China’s Passenger Car Association released Friday.

In tech, Apple Inc (NASDAQ:) rallied more than 3% after Morgan Stanley reiterated its Buy rating on the stock, citing "underappreciated catalysts" including iPhone and services gross margins near all-time highs and future product launches.

Meta Platforms (NASDAQ:) was also in the ascendency, up more than 6%, after the social media giant cut the price of its virtual reality headsets at a time when Wall Street continues to talk up the company’s potential boost from artificial intelligence.

In other AI-related stock news, C3 AI Inc (NYSE:) reported fiscal third-quarter results that Wall Street’s expectations, driven by new business wins and the expansion of partnerships, sending its shares up 33%.

The AI enterprise company also delivered upbeat guidance, with management reiterating their target to reach non-GAAP operating profitability by the fiscal fourth quarter.

Semiconductor stocks also pushed tech higher, underpinned by a more than 5% jump in Broadcom Inc (NASDAQ:) after the chipmaker delivered stronger than expected guidance and its quarterly results estimates.

The chipmaker is “well positioned for a soft landing,” UBS says, as its positioning in “high-end networking and compute offload should prove highly advantageous as hyperscalers look to rapidly scale AI infrastructure.”

Marvell Technology (NASDAQ:) took some shine off chip stocks after reporting mixed fourth-quarter and guidance that fell short of estimates as it continues to work through bloated inventory levels following pandemic-led stockpiling.

Elsewhere on the earnings front, Costco Wholesale (NASDAQ:) reported fiscal second-quarter earnings that beat , but revenue and February same-store sales fell short amid a weaker consumer.

Goldman Sachs said it continued to have confidence in COST’s value proposition continuing to resonate with consumers and noted that the wholesale retailer’s management attributed the weakness in February to adverse weather.

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