Energy, Technology Stocks Surge Reducing S&P Weekly Loss
U.S. stocks rose , trimming the Standard & Poor’s 500 Index’s weekly loss, as gains in energy and technology shares were enough to overcome concern that an impasse over raising the federal debt limit is putting the nation’s top credit rating in jeopardy.
Among the tech gainers was Google (GOOG), which jumped 13 percent after reporting sales that beat predictions, a sign that it’s making progress expanding beyond search advertising.
On the energy side, Petrohawk Energy Corp. (HK) rallied 63% to $38.17 after it agreed to be purchased by BHP Billiton Ltd. (BHP), the world’s largest mining company, for $12.1 billion in cash.
Despite the energy and tech surge, the S&P 500 was down 2.1 percent for the week, the most since the five-day period that ended June 10th.
“The market reaction is completely appropriate considering the uncertainty that we have in the world,” Michael Yoshikami, chief executive officer and founder of YCMNet Advisors, told Bloomberg in a telephone interview. “U.S. stocks retreated because of the debt crisis in Europe and what’s happening with the economic debate in Congress about the debt ceiling. Investors feel anxious, and when investors feel anxious they either sell or sit out.”