Microsoft and Alphabet see worst week since pandemic begins | Financial Market News
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Shares of Alphabet Inc. fell 5.4 percent during the week, and shares of Microsoft Corp fell 6.6 percent.
Who Bloomberg
Posted on January 7, 2022
Alphabet Inc. fell on Friday as Google’s parent extended the fall in the worst-performing weekly weekly since the Covid-19 pandemic began.
Shares fell 0.5% in the fourth consecutive negative session. It fell by 5.4% for the week, the biggest weekly drop since March 2020. Microsoft Corp. ended Friday’s session with a gain of less than 0.1%, but fell 6.6% during the week.
The weekly failure came amid a rise in U.S. bond yields, which put pressure on high-growth names. U.S. 10-year Treasury yields rose about 1.77% on Friday, the highest since January 2020, after falling below 1.4% in December. Higher rates are seen as a windfall against high-growth and relatively expensive stocks, which reduce the current value of future earnings.
Friday’s trade was also affected by the recent employment report, which showed a fall in the unemployment rate and a rise in wages.
Among other names, Apple Inc. It was up 0.1% on Friday from Amazon.com Inc. It lost 0.4% to Meta Platforms Inc. It fell by 0.2%.
The iShares Expanded Tech-Software Sector ETF fell 0.8%. The biggest drop since March 2020 was 8.8%. The scale of recent weakness has been seen by some analysts as having value in the sector. Goldman Sachs wrote that “the group may be selling too much,” giving a positive view of 2022 demand trends.
For Microsoft and Alphabet, the rough start to 2022 comes after a year in which both companies made big profits. Alphabet gained 65% in 2021, more than double the Nasdaq 100 Index’s nearly 27% profit. Microsoft rose more than 50% last year, the 10th consecutive positive year, as well as the ninth consecutive year of double-digit growth.
(Market closing updates.)
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