GRAND RAPIDS – U.S. technology shares rose on Friday, sending the NASDAQ Composite index to its seventh straight week of gains as investors bought semiconductor stocks, amid signs of continued growth in the economy.
A government report showed robust U.S. job growth in November, slightly above market expectations, but the report also revived concerns that too much growth could prompt the Federal Reserve to continue raising interest rates to keep inflation in check, Reuters reported.
The Dow Jones industrial average was down 35.06 points, or 0.32 percent, at 10,877.51. The Standard & Poor’s 500 Index was up 0.41 point, or 0.03 percent, at 1,265.08. But the technology-laced NASDAQ Composite Index was up 6.20 points, or 0.27 percent, at 2,273.37.
For the week, the Dow ended down 0.5 percent, the S&P ended off 0.25 percent and NASDAQ closed up 0.46 percent. The weekly declines for the Dow and the S&P 500 put an end to five straight weeks of gains for the two gauges.
On the NASDAQ, a continued appetite for semiconductor stocks amid growing hopes for improved revenue and profits helped stocks like Intel advance. Deutsche Bank raised its share price target for Intel.
Technology shares were likely to remain a hot sector as investors look for opportunities to profit at the end of the year, said Bill Punk, managing partner, Punk Ziegel & Company.
“You want to be in stocks like technology. Semiconductors are finally looking like they are going to stay alive for a while,” he said.
Biotech shares were weak after several days of bad news in the sector. Inspire Pharmaceuticals’shares plunged 34.05 percent to end at $4.90 after U.S. regulators found studies submitted by the company insufficient to establish the efficacy of its eye drug.
