Fueled by persistent rumors that more U.S. banks would face a liquidity crunch, all three major indices traded lower last Friday, March 17, 2023. Every S&P 500 (SPY) sector closed lower that day, led by financials. For the week, Nasdaq (QQQ) shined, rising by 5.83%.
The market is bifurcating. Alphabet (GOOG) gained 12.13% after ending maternity leave and health care support for the staff it laid off.
Its YouTube TV price hike is a catalyst. New subscribers will pay $8.00 more, or $72.99 a month, for the service. Existing subscribers will start paying more on Apr. 18.
The U.S. government issued a ban on TikTok for its staff. This is another major catalyst for GOOG stock and Meta Platforms (META).
Without the ban, Meta has no answer to the highly engaging and addictive site. META stock gained 9% last week. Microsoft (MSFT) rose by 12.4%. Bullishness continued for ChatGPT, whose updated GPT 4.0 may score higher on SAT than most people.
This week, Meta will copy the Twitter subscription model. Just as Twitter users pay for a blue checkmark, Meta Verified service will give users a blue badge for $11.99 a month.
A small handful of mega tech firms are shining. The rest of the market is slumping as economic prospects weaken.
