Another week, another Google ( GOOG) gaffe. But it was yet another central bank's move to mop up global liquidity that kept bond yields high and stocks under pressure for much of the week. Following in the footsteps of the European Central Bank, which hiked rates to 2.5% last week and signaled more to come, the Bank of Japan this week took a first step to unravel a policy that kept rates near zero over the past five years. The Federal Reserve will meet in a little more than two weeks to deliver another quarter-point rate hike, it is widely believed. Anticipation of these global tightening trends mostly hurt rate-sensitive assets -- bonds, commodities, financial and housing stocks -- but that's already a pretty big chunk of market leadership right there. With technology stocks continuing to sink, led by the chip sector and Google, the market wasn't looking so good by Thursday. Wall Street managed another hurrah on Friday, perhaps inspired by springlike temperatures in the Northeast, or more likely by a stronger-than-expected jobs report, which reminded investors that rates the world over are rising for a good reason: Global growth is strong and picking up. News that the economy added 243,000 jobs, above forecasts for a 210,000 gain, sparked a rally Friday. The Dow Jones Industrial Average rose 104.06 points, or 0.95%, to 11,076, the S&P 500 gained 0.7% to 1281 and the Nasdaq Composite rose 0.6% to 2262. For the week, the Dow gained 0.5% but the S&P dropped 0.6% and the Nasdaq fell 2.1%.
Exchanges at 20 Paces
Google dropped 10.6% this week after the Internet search engine revealed it made another gaffe Tuesday by accidentally releasing financial forecasts on the Web in conjunction with its analyst day meeting last week, as reported here. It's not only tech shares that are suffering but also the exchange that has come to symbolize them. The Nasdaq Stock Market ( NDAQ) took two blows this week.