stocks

Stock Market Today 9/25/20: Stocks Win the Session but Lose the Week on Growth Fears

The market ended a choppy week of trading with gains, but the Dow and S&P 500 fell on a weekly basis yet again.

All three major indexes closed a choppy week of trading with gains on Friday, but the Dow Jones Industrial Average and S&P 500 still logged a weekly loss for the fourth consecutive week.

Friday's session was defined, in part, by more mixed economic data. Core capital orders increased by more than forecast, but growth in durable goods orders rose less than expected. Altogether the data did nothing to reassure a market that's concerned about a slowing recovery amid waning federal financial help for businesses and the unemployed.

"Risk assets remained stable following the economic releases as last month’s readings were revised upwards, but cyclical assets continue to experience bouts of selling due to the growing global economic worries," Gorilla Trades notes. 

Against that backdrop, tech stocks once again took center stage as investors scramble for growth in a recessionary environment, with Microsoft (MSFT), Apple (AAPL) and Salesforce.com (CRM) being among the Dow's top gainers. For the record, the blue-chip average rose 359 points, or 1.3%, to finish at 27,174.

The usual anxieties surrounding the imminent end of fiscal stimulus, a mixed economic picture and rising COVID-19 cases will likely take center stage next week, as the corporate earnings calendar is pretty light. Highlights include a report from Micron Technology (MU) on Tuesday, and results from Pepsico (PEP) Thursday.

Other action in the market today:

  • The Nasdaq Composite gained 2.3% to close at 10,913.
  • The S&P 500 added 1.6% to finish at 3,298.
  • The small-cap Russell 2000 closed up 1.6% at 1,474.
  • Boeing (BA) shares rose 6.9% on news that the European regulatory ban on the 737 MAX jet could be lifted in November. 

Keep an Open Mind About Under-the-Radar Tech Stocks

At the risk of sounding like a broken record, tech stocks have been a safe haven in an otherwise tough market and look poised for more outperformance ahead.

Indeed, tech is one of the few sectors expected to report revenue growth for the third quarter. When investors think of tech stocks, no doubt their minds go to well-known tech behemoths in the Dow and other mega-players such as Google-parent Alphabet (GOOGL), Amazon.com (AMZN) and Facebook (FB). But as remunerative -- and popular -- as those names may be, they represent only a part of the tech landscape.

For example, as much as they might offer exposure to Artificial Intelligence, there are a host of ways to make cheap, concentrated bets on AI through exchange-traded funds. The same goes for investors looking to benefit from the rollout of 5G networks or the rapid growth of cloud computing.

Lastly, there are plenty of smaller, under-the-radar tech names set for outsized growth as they cater to the latest trends. These stocks might be relatively anonymous, but that doesn't mean they can't generate returns like the big boys.

Most Popular

Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
7 Best Commodity Stocks to Play the Coming Boom
commodities

7 Best Commodity Stocks to Play the Coming Boom

These seven commodity stocks are poised to take advantage of a unique confluence of events. Just mind the volatility.
September 8, 2021
Stock Market Holidays in 2021
Markets

Stock Market Holidays in 2021

Is the stock market open today? Take a look at which days the NYSE, Nasdaq and bond markets take off in 2021.
September 2, 2021

Recommended

Can Nike (NKE) Stock Shrug Off Supply Chain Woes?
stocks

Can Nike (NKE) Stock Shrug Off Supply Chain Woes?

Our preview of the upcoming week's earnings reports include Nike (NKE), FedEx (FDX) and Darden Restaurants (DRI).
September 20, 2021
Investment Strategies for the 4 Stages of the Economic Cycle
Markets

Investment Strategies for the 4 Stages of the Economic Cycle

The U.S. economy is cyclical in nature, surging ahead and pulling back in waves over time. Investors’ portfolios need to change with the rise and the …
September 19, 2021
Stock Market Today (9/17/21): Stocks End Choppy Week With a Loss
Stock Market Today

Stock Market Today (9/17/21): Stocks End Choppy Week With a Loss

A lower-than-expected reading on consumer sentiment had the major indexes erasing weekly gains.
September 17, 2021
Kiplinger's Weekly Earnings Calendar
stocks

Kiplinger's Weekly Earnings Calendar

Check out our earnings calendar for the upcoming week, as well as our previews of the more noteworthy reports.
September 17, 2021