By Yasin Ebrahim

Investing.com – The Nasdaq closed at all-time highs Friday, as tech rallied on positive earnings and growing demand for growth sectors of the market amid jitters about the global economy as fresh Covid-19 lockdowns appear on the horizon in Europe. 

The fell 0.19%, the slipped 0.75%, or 268 points, the Nasdaq gained 0.44% to end the day at a closing record of 16,057.4.

Ituit The tech sector’s move up was led by (NASDAQ:) after the financial software company announced fiscal first quarter results which were better than expected.  These positive results led to a surge in bullish price targets upgrades on Wall Street. Deutsche Bank raised its Intuit price target from $700 to $780, and Deutsche Bank increased their price target for Intuit’s target of $780.

“Despite INTU shares +66% year to date (vs IGV +24%) we expect continued strength on the back of these results and as we enter tax season where opportunities with TurboTax Live and cross-selling Credit Karma should drive upside to updated guidance, {Deutsche Bank said.

The broader tech sector was also helped by Semiconductor stock as a rise in Micron Technology (NASDAQ;) and Nvidia(NASDAQ:), offset weaknesses in Applied Materials.

Applied Materials (NASDAQ) released third quarter results and guidance for fourth quarter. These were below estimates due to supply shortages continuing to hinder growth. Its stock fell over 5%.

Tech’s meltdown was also fueled by a renewed appetite for growth stocks, amid worries about slowing global economic growth. This is because parts of Europe are expected to increase Covid-19 restrictions.  

Austria announced Monday that it will impose a national lockdown to stop the growth of Covid-19 cases. This raises concerns over the potential impact on the global economic system as other larger bloc economies, including Germany, could also impose new restrictions.

“[S]Markets suddenly pay attention [to raising Covid-19 cases in Europe] perhaps because policy responses are beginning to emerge,” Scotiabank Economics said.

Consumer discretionary stocks continued to gain, which is one of the most performing segments this week. Nike (NYSE:), and Tesla (NASDAQ;) increased more than 2% each. 

As oil prices fall below $80/barrel, energy fell by more than 3%. This is due to concerns that new restrictions in Europe may reduce oil demand.

Devon Energy Hess (NYSE) Baker Hughes (NYSE:) All fell above 5% leading to the decline in the energy industry.

As investors relaxed their expectations of a reopening, travel-related stocks like United Airlines (NASDAQ;), Carnival(NYSE:) or Airbnb (NASDAQ:), were in pressure.

Healthcare, however, is not a priority. Moderna The standout performer was (NASDAQ:), which saw a 4 percent increase after Covid booster shots were approved by the Food and Drug Administration for all U.S. citizens. Pfizer’s vaccine also received approval.

Ford Motor Company (NYSE 🙂 has confirmed it will drop its plans to co-develop an electric vehicle. Rivian Automotive Inc (NASDAQ:). Rivian closed the day higher than 4%

On the political front, the House of Representatives passed President Biden’s $1.75 trillion “human infrastructure” package, or Build Back Better Act.

The Senate will move the legislative measure to its consideration. Democrats are hoping to pass the bill using budget reconciliation without Republican support.

The bill will likely have to be revised as centrists such as Sen. Joe Manchin of West Virginia have balked at its hefty price tag, and “question claims the initiative was fully paid for,” Stifel said.

“The bill would contribute $791B to the deficit in the next five years and $367B to the deficit over the coming 10 year period,” Stifel added, citing findings from the Congressional Budget Office.