As the trading week came to a close, the stock market saw a third straight day of declines on Friday afternoon. The S & P 500 and Nasdaq Composite were firmly in the red, with the Dow Jones Industrial Average also falling. The market rotation out of 2024 technology winners continued, with small caps and value stocks seeing gains throughout the week.
Energy, financials, and real estate were the standout sectors during the week, with energy and financials up around 2.5% and 1.5%, respectively. Real estate rallied on expectations of Federal Reserve rate cuts, while the technology sector took a hit, down nearly 5% due to concerns about tariffs and export controls.
In a “Mad Money” interview, Constellation Brands CEO Bill Newlands addressed concerns about the company’s stock performance, pushing back on overhangs such as sluggishness in the beer category and potential impacts from another Trump presidential term. Despite a drop in shares this week, Newlands remained optimistic about the company’s growth story and dismissed the idea that a Trump victory would hinder its business.
Looking ahead, second-quarter earnings season is set to pick up next week, with companies like Danaher, Alphabet, and Ford Motor reporting their results. The economic release to watch is Friday morning’s core personal consumption expenditures price index, a key inflation reading for Fed policymakers.
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