Nasdaq, S&P 500 Hit New Highs, Log Sixth Consecutive Weekly Gains

The Nasdaq Composite and S&P 500 closed at new record highs on Friday, extending their weekly gains. This marks the sixth consecutive week of gains for both indices, according to market data.

Possible Drivers

The sustained rally in major indices is attributed to several factors:

• Strong earnings from major tech companies: Including NVIDIA (NVDA), Apple (AAPL), Micron (MU), and Intel (INTC), which boosted investor confidence in the sector.
• Positive macroeconomic outlook: Despite persistent inflation, recent economic data showed resilience, easing recession fears.
• Expected monetary policy: Growing expectations that the Federal Reserve may begin cutting interest rates in the second half of the year supported equities.

Context

• Weekly performance: Both the Nasdaq and S&P 500 posted gains for the sixth straight week, the longest weekly winning streak since early 2024.
• Monthly performance: Since the start of May, the Nasdaq is up 3.2% and the S&P 500 up 2.8%.
• Leading sectors: Technology and communication services stocks led the rally, while energy and materials lagged.

Similar Moves in the Sector

Major tech stocks showed mixed performance:

• NVIDIA (NVDA): Rose 4.5% during the week, driven by strong demand for AI chips.
• Apple (AAPL): Gained 2.1% after announcing a $110 billion share buyback.
• Intel (INTC): Increased 1.8% on supply chain improvements.
• Micron (MU): Up 3.0% amid positive memory market outlook.