The Nasdaq Composite closed out the week with a modest gain even as the Dow Jones Industrial Average slid for a third straight week. Rising Treasury yields pressured stocks Friday, while chip-equipment names and Broadcom cushioned the Nasdaq's slide.
The Nasdaq Composite slipped 0.1% Friday. The Dow Jones Industrial Average fell further, dropping 0.4% as bond yields climbed.
Treasury yields set the mood for the session. The 10-year yield climbed back above 5%, rising more than five basis points and crossing that threshold for the first time since 2007. That move followed the Federal Reserve's interest-rate hike earlier in the week, the first in three years.
Chip-Equipment Stocks Lead Gains
Semiconductor-equipment stocks were among the day's best performers, with the group up nearly 3%. Lam Research gained 5% and Applied Materials climbed 4%, while KLA Corp rose around 3%.
Broadcom Offsets Nasdaq Losses
Within the Nasdaq, gains were uneven. Broadcom rose 2.4% and was the biggest single lift for both the S&P 500 and the Nasdaq Composite. On the downside, Netflix dropped nearly 6% and Palo Alto Networks fell almost 2%.
Goldman Sachs, Buffett Transition Weigh on the Dow
The Dow's losses concentrated in a few names. Goldman Sachs fell 1% and alone subtracted 58 points from the index. Berkshire Hathaway shares eased about 0.2% lower after Warren Buffett said he would step down as chairman at 96; his son Howard Buffett takes over the role, and Greg Abel remains chief executive. Buffett wrote in a letter to shareholders: "Father Time always wins."
The week's tally told a different story. The Dow ended down about 2% for a third consecutive losing week. The S&P 500 slipped roughly 0.5% over the same stretch. The Nasdaq Composite still closed up about 0.3%.
Sources: Investor's Business Daily, The Motley Fool
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