The S&P 500 (SP500) on Friday rose 1.32% for the week to end at 5,346.99 points, posting gains in four out of five sessions. Its accompanying SPDR S&P 500 ETF Trust (NYSEARCA:SPY) rose 1.26%.
The benchmark index scored its weekly win after logging a decline in the previous week that was shortened by a holiday.
The S&P 500’s (SP500) weekly gain included touching a record intraday high above 5,375 points on Friday. The advance was largely powered by mega-cap technology stocks (COMP:IND). Investors drove ~$900M in technology funds over the past week, marking the largest inflow in nine weeks, Bank of America said Friday.
Chipmaker Nvidia (NVDA) made Wall Street history this week by becoming only the third public company to cross a $3T market capitalization, joining Apple (AAPL) and Microsoft (MSFT). The ongoing AI investment frenzy sent Nvidia’s stock up +10% for the week. A 10-for-1 stock split went into effect late Friday. Nvidia (NVDA) shares will start trading on a split-adjusted basis on Monday.
“We think AI will keep driving tech outperformance,” UBS Strategist Jon Gordon said in a note Friday. “But the story doesn’t end with AI, as large tech names also offer quality exposure,” he said.
While the S&P 500 (SP500) rose for the week, it slipped on Friday by 0.11%. It was stung by a jump in Treasury yields (US2Y)(US10Y) after the hot May non-farm payrolls report prompted traders to push out timing expectations for rate cuts by the Federal Reserve. Citi and J.P. Morgan scratched out their calls for July, moving them to September and November, respectively.
The tech-focused Nasdaq Composite (COMP:IND) edged down Friday but popped up by 2.38% for the week. The blue-chip Dow index (DJI) also slipped Friday but ended the week up by 0.29%.
Next week, the Fed will release its June policy decision and investors will key into its dot plot of interest rate expectations. Apple’s (AAPL) WWDC Conference will run, with markets watching for any updates about generative AI moves.
Turning to the weekly performance of the S&P 500 (SP500) sectors, five of 11 sectors rose. Information Technology and Health Care topped gainers. Energy and Utilities fell. See below a breakdown of the performance of the sectors as well as their accompanying SPDR Select Sector ETFs from May 31 close to June 7 close:
#1: Information Technology +3.83%, and the Technology Select Sector SPDR Fund ETF (XLK) +2.59%.
#2: Health Care +1.59%, and the Health Care Select Sector SPDR Fund ETF (XLV) +1.90%.
#3: Communication Services +1.72%, and the Communication Services Select Sector SPDR Fund (XLC) +1.37%.
#4: Consumer Discretionary +1.53%, and the Consumer Discretionary Select Sector SPDR ETF (XLY) +0.96%.
#5: Consumer Staples +0.46%, and the Consumer Staples Select Sector SPDR Fund ETF (XLP) +0.41%.
#6: Real Estate -0.23%, and the Real Estate Select Sector SPDR Fund ETF (XLRE) -0.21%.
#7: Financials -0.48%, and the Financial Select Sector SPDR Fund ETF (XLF) -0.38%.
#8: Industrials -0.97%, and the Industrial Select Sector SPDR Fund ETF (XLI) -0.96%.
#9: Materials -2.03%, and the Materials Select Sector SPDR Fund ETF (XLB) -1.90%.
#10: Energy -3.48%, and Energy Select Sector SPDR Fund ETF (XLE) -3.24%.
#11: Utilities -3.93%, and the Utilities Select Sector SPDR Fund ETF (XLU) -3.82%.
For investors looking into the future of what’s happening, take a look at the Seeking Alpha Catalyst Watch to see next week’s breakdown of actionable events that stand out.