Tesla and ARKK rally as 2021 energy returns to 2023 stock market

A market rally on Friday accented by higher tears from some battered and bruised tech stocks that faltered last year make this year’s price action look a lot like the rally in 2021.

Beat names including Tesla (TSLA), Carvana (CVNA) and Coinbase (COIN) each rose more than 10% on Friday.

Cathie Wood’s ARK Innovation ETF (ARKK), a high-flying technology indicator, advanced 4% intraday. ARKK has gained more than 25% this month alone, which Reuters says puts the fund on pace for its best-ever monthly gain.

A mini meme swap was also in the works on Friday.

Shares of BuzzFeed (BZFD) soared as much as 150% after an internal memo revealed the media giant plans to rely heavily on AI to generate content. Shares are up 72% when last checked.

This marks a big turnaround for the company, which has lost around three-quarters of its value since going public via a SPAC suit in late 2021.

Reddit’s trader favorite GameStop (GME) was in the throes of a volatile session, rising around 15% in the afternoon.

And Lucid Group (LCID), an electric vehicle maker known for its mega SPAC merger in 2021, rose about 40% on Friday.

Tesla, which wiped out 65% of its value in 2022 for its worst year on record, rebounded 10% on Friday. For the year, Tesla is up more than 40% if momentum continues through the close.

The stock’s rally this week also comes after Tesla’s quarterly results beat expectations as the company told investors it plans to begin production of its Cybertruck later this year.

Tesla CEO Elon Musk and his security detail leave the company's local office in Washington, U.S. January 27, 2023. REUTERS/Jonathan Ernst

Tesla CEO Elon Musk and his security guards leave the company’s local office in Washington, U.S. January 27, 2023. REUTERS/Jonathan Ernst

«The recent rally in meme stocks and nonprofit tech stocks is a pretense and there’s still plenty of excess capital in the system, even with everything the Federal Reserve has done over the past year. “said David Trainer, CEO of investment research firm New Constructs, Yahoo Finance said on Friday.

Wall Street’s risky mood comes as investors believe that moderating economic data will prompt the Federal Reserve to end its rate hike cycle sooner than expected. The US central bank is expected to cut its pace of interest rate hikes to 25 basis points at its meeting next week.

Friday’s moves come with a broader upward push in the major stock averages that have the three highest indexes to start the year.

The tech-heavy Nasdaq Composite, which lost a third of its value in 2022, leads the way with a 9% gain so far this year.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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