S&P 500, Dow Jones End Ideal Week Near Record Highs

Following a positive week, the main US market indices ended Friday with gains once more. The S&P and NASDAQ recorded five days in a row of gains, capping an ideal week. With a gain of 6% this week, the NASDAQ index overcame its -5.80% fall from the previous week, while the S&P gained around 4% for the week.

The core US CPI consumer inflation and core PPI producer inflation this week came a tad higher than expectations, showing some stickiness, but the market seems to have brushed off that and the odds of a 50 bps FED rate cut are now higher. That helped risk sentiment remain positive, keeping the bullish momentum going for stock markets.

S&P 500 Chart Daily – A New Record High Next Week?

Recent developments have reignited worries among many investors about a small number of stocks having an outsized influence on the market’s direction. Microsoft, Apple, and Nvidia collectively account for nearly 20% of the S&P 500’s weight. While Nvidia’s shares have surged dramatically this year, the gains for Microsoft and Apple have been notably smaller. Analysts suggest that, although the recent strength in non-tech sectors has sparked hope for a more widespread rally, any sustained downturn in these major tech giants could still negatively affect the broader market’s performance.

Friday’s Closing Levels for Main US Stock Indices:

S&P 500 Live Chart