The S&P 500 managed to secure its third consecutive weekly gain despite a slight dip on Friday, with Nvidia taking a step back from its recent surge. By the end of trading on Friday, the S&P 500 was up 0.04%, while the Nasdaq closed 0.1% lower and the Dow fell 0.2%.
One of the key highlights of the day was Nvidia’s drop in value, causing it to slip to the third most valuable company position. The chipmaker saw a 3% decline, ending an eight-week winning streak. Despite this setback, the overall excitement surrounding artificial intelligence applications suggests that the demand for Nvidia’s stock remains strong.
In other news, Boeing was reportedly nearing a deal to repurchase Spirit Aerosystems, its former subsidiary, which led to a positive uptick in both companies’ stock prices. CarMax also saw a boost in its stock after reporting stronger-than-expected first-quarter profits.
Additionally, manufacturing and services activity surprised to the upside in June, with the purchasing managers’ index readings coming in higher than anticipated. This indicates strength in the economy and less urgency for rate cuts, according to economists. Federal Reserve officials have also expressed caution about premature rate cuts, emphasizing the need for more evidence of inflation control before considering easing monetary policy.
As the session came to a close, investors braced for volatility as ‘triple witching’ approached. This phenomenon, where stock options, stock index futures, and index option contracts expire on the same day, typically leads to increased market volatility as investors adjust their positions.
Overall, despite some fluctuations in individual stocks, the broader market showed resilience and ended the week on a positive note.
