On Friday, the tech-heavy Nasdaq and S&P 500 experienced gains as megacap growth stocks rebounded from significant losses in the prior session. Meanwhile, the Dow Jones Industrial Average paused its upward momentum following a nine-day winning streak.

The blue-chip index remained on track to close the week with higher gains as it continued its impressive rally from the previous session, achieving its lengthiest winning streak in almost six years. Johnson & Johnson (NYSE:JNJ) played a key role in this positive performance, with strong forecasts driving significant gains and bolstering overall market sentiment.

Investors are shifting their focus from technology and consumer sectors to energy, financials, and healthcare, according to Art Hogan, the chief market strategist at B Riley Wealth.

He said it would really affect the Dow a lot. He also said that this trend shows that investors are trying to catch up and get better returns by looking for sectors and investments that haven’t done well yet, especially in the later part of this year.

The tech-heavy Nasdaq lagged Wall Street peers in the previous session as earnings reports from Tesla (NASDAQ:TSLA) and Netflix (NASDAQ:NFLX) failed to dazzle.

The NYSE FANG+TM index, that houses the megacap growth names, rose 0.5 on Friday, after falling 4.6% in the previous session and posting its worst day in 2023.

The Nasdaq surged 34.7% this year due to a strong focus on high-growth stocks, driven by optimism about artificial intelligence, a resilient U.S. economy, and expectations of a slowdown in the Federal Reserve’s rate hikes.

While the Fed is widely expected to go for a 25 basis point hike at its July 25-26 meeting next week, market participants have been mixed as to where it will go in the ensuing months.

At 09:48 a.m. ET, the Dow Jones Industrial Average was down 17.39 points, or 0.05%, at 35,207.79, the S&P 500 was up 10.46 points, or 0.23%, at 4,545.33, and the Nasdaq Composite was up 61.83 points, or 0.44%, at 14,125.13.

Nine of the 11 major S&P 500 sectors advanced, with tech stocks leading gains with a 0.6% rise.

Expiration of monthly options on Friday is expected to add to market volatility during the session, as per analysts.

American Express (NYSE:AXP) fell 5.0% after the credit card giant missed quarterly revenue expectations and kept its full-year profit forecast unchanged, unnerving investors.

SLB shed 2.3% as the top oilfield services firm missed quarterly revenue expectations due to moderating drilling activity in North America.

Investors were also awaiting a special rebalancing of the multi-trillion dollar Nasdaq 100 due at the close of trading on Friday.

Advancing issues outnumbered decliners by a 1.29-to-1 ratio on the NYSE and a 1.46-to-1 ratio on the Nasdaq.

The S&P index recorded 26 new 52-week highs and no new lows, while the Nasdaq recorded 51 new highs and 22 new lows.