But perhaps the most volatile stock index was the tech-heavy Nasdaq. There were no new economic reports Friday to dampen expectations the Federal Reserve will cut interest rates next month to prevent a recession and no new profit warnings from major companies. But a holiday rally was cut short Friday as investors dumped laggard stocks to record tax losses. While analysts are optimistic that investors will snatch up discounted tech stocks during January, they question how long the buying spree will last. The market's dynamics during the last week of the year offer little hope of a sustained rally.
More disappointments are likely when companies start announcing fourth-quarter results.
First-quarter earnings also are expected to fall short of expectations. And companies won't see immediate benefits from the Fed's expected interest rate cut. You're not going to get good news from techs. The Nasdaq hasn't posted more than two consecutive winning sessions since early September and Friday was the index's last shot at a three-session rally. It fell way short.