Wall Street ended the holiday-shortened trading week on a high note, with tech stocks taking the lead. The Dow Jones Industrial Average saw a modest gain of under 1% for the week, while the S & P 500 and Nasdaq closed at record highs on Friday, rising nearly 2% and 3.5%, respectively.
The first week of July continued the positive momentum seen in June, the second quarter, and the first half of 2024. The standout performer of the week was the S & P 500 technology sector, with companies like Apple and Broadcom leading the way. Consumer discretionary and communication services sectors, featuring Club names like Meta Platforms and Alphabet, also showed strength.
However, energy stocks led to the downside this week, followed by health care and industrials. Despite this, the overall market sentiment remained positive, with investors optimistic about the future.
The week also brought some notable updates on the economy, including the quarterly results of Club holding Constellation Brands. While the brewer’s results were decent, the troubled wine and spirits business remained a concern for management to address in the coming quarters.
Friday’s trading session saw a boost from a drop in bond yields, following the release of the government’s monthly jobs report. The report showed an uptick in June’s unemployment rate to 4.1% and modestly higher than expected nonfarm payrolls additions. These numbers supported the case for the Federal Reserve to cut interest rates at its upcoming meetings.
Looking ahead, investors will be focusing on earnings season, with big money center banks like Wells Fargo set to report their quarterly results. Additionally, key economic data on consumer and wholesale inflation will be released, providing insights into the state of the economy.
Overall, Wall Street’s performance for the week reflects the ongoing optimism in the market, despite some challenges in certain sectors. Investors will be closely watching upcoming events and data releases for further guidance on the market’s direction.
