Technology shares pace US equities rebound

Trading was volatile in the holiday shortened last week with broad stock market following the technology sector’s lead. The SP 500 recovered 2.1% paring last week’s 6% drop and the ICE dollar index rose 0.5% for the week. However both the SP 500 and dollar index closed down for the month of March.

The ICE US dollar index ended lower Monday and Friday last week. It fell 0.5% Monday, but rebounded 0.3% Tuesday as S&P/Case-Shiller national house price index rose 6.2% compared with a year before. The dollar rallied 0.8% Wednesday as the annualized pace of growth in the economy in the fourth quarter of 2017 was revised to 2.9% from 2.5%. The dollar index was little changed Thursday but slipped 0.1% Friday in low volume trading.

The SP 500 closed lower Tuesday and Wednesday last week. It rallied 2.7% Monday on reports that the US and China are conducting talks to avert a global trade war. The broad market index dropped 1.7% Tuesday led by technology and financial shares, and extended losses 0.3% Wednesday as the technology stocks selloff continued. SP 500 rebounded 1.2% Thursday led by recovery in Facebook, Apple and other technology majors as US personal spending remained steady at 0.2% over month in February.

This week traders will be watching closely for new developments in the US and China tariff moves after China instituted retaliatory penalties up to 25% on US goods including fruits and pork. US nonfarm payrolls report is the highlight of this week’s economic data with unemployment rate decline to 4% for March expected after it remained at 4.1% in the five previous months.