The S&P 500 Index (SP500) rose 1.32% for the week on Friday to close at 5,346.99 points, with gains in four of five trading days. Its accompanying SPDR S&P 500 ETF Trust (New York Stock Exchange: Spy) rose 1.26%.
Benchmark Index Weekly Score After recording losses last week, the session was shortened due to the holidays.
The S&P 500’s (SP500) weekly gains included hitting an intraday all-time high above 5,375 on Friday. The rally was largely driven by large-cap technology stocks (COMP:IND). Investors poured about $900 million into technology funds over the past week, Bank of America said on Friday, marking the largest inflows in nine weeks.
Chipmaker Nvidia (NVDA) made Wall Street history this week, becoming the third public company after Apple (AAPL) and Microsoft (MSFT) to have a market value of more than $3T. The ongoing investment boom in artificial intelligence has sent Nvidia’s stock price up 10% this week. The 10-for-1 stock split took effect late Friday. Nvidia (NVDA) stock will begin trading on a split-adjusted basis on Monday.
“We think artificial intelligence will continue to drive outperformance in tech stocks,” UBS strategist Jon Gordon said in a note on Friday. “But the story doesn’t end with artificial intelligence, as large tech companies also offer high-quality exposure,” he said.
Although the S&P 500 index (SP500) has gained this week, it fell 0.11% on Friday. The dollar was hit by a sharp rise in U.S. Treasury yields (US2Y) (US10Y) after a hot May non-farm payrolls report prompted traders to postpone expectations for the timing of a rate cut by the Federal Reserve. Citigroup and JPMorgan canceled their July forecasts, pushing them to September and November respectively.
The tech-heavy Nasdaq Composite Index (COMP:IND) fell slightly on Friday but rose 2.38% for the week. The blue-chip Dow Jones Industrial Average (DJI) also fell on Friday, but ended the week up 0.29%.
Next week, the Federal Reserve will release its June policy decision, and investors will focus on its dot plot of interest rate expectations. Apple’s (AAPL) WWDC conference will take place, and the market will be watching for any updates on its generative artificial intelligence initiatives.
As for the weekly performance of the S&P 500 Index (SP500) sectors, 5 out of 11 sectors were in positive territory. Information technology and health care were among the top gainers. Energy and utilities fell. See below a breakdown of the performance of each sector and its accompanying SPDR Select Sector ETF from May 31 to the close of June 7:
#1: Information Technology +3.83%and Technology Select Sector SPDR Fund ETF (XLK) +2.59%.
#2: Healthcare +1.59%and the Healthcare Select Sector SPDR Fund ETF (XLV) +1.90%.
#3: Communication Services +1.72%and Communications 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: Finance -0.48%and the Financial Select Sector SPDR Fund ETF (XLF) -0.38%.
#8: Industrial -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%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 keeping an eye on future developments, check out Seeking Alpha Catalyst Watch for details on the actionable events that stand out next week.
