On Friday, the S&P 500 Index (SP500) rose 1.32% during the week to end at 5,346.99 points, recording gains in four out of five sessions. The accompanying SPDR S&P 500 ETF (NYSEARCA: SPY) by 1.26%.
The benchmark index recorded its weekly rise Gains after posting a decline the previous week that was shortened by the holiday.
The S&P 500 (SP500) weekly gains included touching a record intraday high above 5,375 points on Friday. The advance was largely supported by large-cap technology stocks (COMP:IND). Bank of America said on Friday that investors pushed nearly $900 million out of technology funds over the past week, representing the largest inflow in nine weeks.
Chipmaker Nvidia (NVDA) made Wall Street history this week when it became only the third public company to exceed $3 trillion in market cap, joining Apple (AAPL) and Microsoft (MSFT). The ongoing AI investment craze sent Nvidia shares up 10% over the week. The 10-for-1 stock split took effect late Friday. Nvidia (NVDA) shares will begin trading on a split-adjusted basis on Monday.
“We believe AI will continue to drive technology outperformance,” John Gordon, a strategist at UBS, said in a note on Friday. “But the story doesn’t end with AI, as big tech names also provide a high-quality offering,” he added.
While the S&P 500 (SP500) rose during the week, on Friday it fell by 0.11%. It was affected by the jump in US2Y (US10Y) Treasury yields after the May non-farm payrolls report prompted traders to push forward expectations of the timing of interest rate cuts by the Fed. Citi and JPMorgan have scrapped their forecasts for July, moving them to September and November, respectively.
The technology-focused Nasdaq Composite (COMP:IND) fell on Friday but rose 2.38% for the week. The blue-chip Dow Jones Index (DJI) also fell on Friday but ended the week up 0.29%.
Next week, the Federal Reserve will release its June monetary policy decision and investors will weigh in on its dot chart of interest rate expectations. Apple's (AAPL) WWDC conference will be held, with markets watching for any updates on its generative AI moves.
Turning to the weekly performance of the Standard & Poor's 500 (SP500) sectors, five of the 11 sectors rose. Information technology and healthcare stocks topped the list of gainers. Energy and utilities declined. See below a breakdown of the sector performance as well as the accompanying SPDR sector ETFs from May 31 through the June 7 close:
#1: IT +3.83%SPDR Technology Sector ETF (XLK) +2.59%.
#2: Health care +1.59%The Healthcare Select SPDR Fund ETF (XLV) +1.90%.
#3: Communications services +1.72%Telecommunications Services SPDR Fund (XLC) +1.37%.
No. 4: Consumer Discretionary +1.53%Consumer Discretionary Sector SPDR ETF (XLY) +0.96%.
#5: Consumer goods +0.46%Select Consumer Staples SPDR Fund ETF (XLP) +0.41%.
#6: Real estate -0.23%SPDR Real Estate ETF (XLRE) -0.21%.
#7: Finance -0.48%SPDR Sector ETF (XLF) -0.38%.
#8: Industries -0.97%SPDR Industrial Sector ETF (XLI) -0.96%.
No. 9: Materials -2.03%ETF Select Sector SPDR Fund (XLB) -1.90%.
No. 10: Energy -3.48%SPDR Energy Sector ETF (XLE) -3.24%.
No. 11: Facilities -3.93%Selected Utilities SPDR Fund ETF (XLU) -3.82%.
For investors looking ahead to what's happening, take a look at the Seeking Alpha Catalyst Watch for details of actionable events highlighting next week.
