Technology sector boosts Nasdaq to fifth consecutive record high; Dow falls behind

Investors are closely watching Apple and Nvidia on Friday as the two tech giants compete to be America’s second-most valuable company by float-adjusted market capitalization. The $70 billion Technology Select Sector SPDR Fund (XLK) will be rebalanced next week based on today’s market close, with individual stock weights capped at 23% and the sum of stocks weighing more than 5% not exceeding 50%. This means that if Nvidia’s cap closes above Apple’s, its weight in the index will jump above 20% next Friday, while Apple’s will be cut to less than 5%.

Meanwhile, Arm Holdings is set to join the Nasdaq-100 Index, replacing Sirius XM Holdings. The British semiconductor and software design company’s American depositary receipts (ADRs) initially rose on the news but reversed course later in the afternoon. On the other hand, RH, the upscale home furnishings retailer, posted a bigger-than-expected loss due to the challenging housing market, leading to a sharp decline in its shares.

Stellantis, the automaker behind Jeep and Fiat, announced plans to shift some electric vehicle production from China to Europe following threats of tariffs on Chinese-made EV imports by European regulators. This decision caused a drop in Stellantis shares. On a positive note, Adobe’s stock surged after reporting earnings that beat estimates and raising its full-year guidance, driven by strong demand for its generative artificial intelligence digital media products.

Overall, stock futures were down in early trading, with Dow futures down 0.8%, S&P futures down 0.5%, and Nasdaq futures down 0.3%. Investors will be closely monitoring these developments as they navigate the ever-changing landscape of the stock market.