Key Takeaways:
- Stocks Close Higher for the Week: Despite a mixed end, both the S&P 500 and Nasdaq Composite managed slight gains last week. The S&P 500 is up 15% for the year, and the Nasdaq is up 18%.
- Nvidia Posts First Weekly Loss Since April: Nvidia, a leader in AI technology, saw its first weekly decline since April, dropping 3.2% on Friday. This drop raised questions about the sustainability of the AI-driven market rally.
- S&P 500 Rebalances; KKR, CrowdStrike, and GoDaddy Added: The S&P 500 underwent a rebalancing, adding KKR, CrowdStrike, and GoDaddy, while removing Robert Half, Comerica, and Illumina.
Market Overview:
The tech sector, especially stocks related to Artificial Intelligence (AI), has largely driven the yearly gains in the market. Nvidia, a prominent name in AI, recently experienced a significant rise but ended last week with a 3.2% decline, marking its first weekly loss since April. This has sparked concerns among investors about whether the AI boom is losing steam or if it was a brief period of profit-taking.
Economic Data and Fed Watch:
Recent economic reports, such as a decline in Existing Home Sales and weaker-than-expected Retail Sales, suggest a slowing economy. These reports are critical as they may influence the Federal Reserve’s decisions on interest rates. The upcoming Personal Consumption Expenditures (PCE) report on Friday is expected to be a key indicator, with a projected 0.1% month-over-month price increase.
Earnings Reports to Watch:
- FedEx reports on Tuesday.
- Micron reports on Wednesday.
- Walgreens and Nike report on Thursday.
Apple’s Regulatory Challenges:
Apple warned of potential delays in releasing its AI features in Europe due to regulatory issues. Additionally, the European Union accused Apple of violating the Digital Markets Act, impacting the company’s ability to offer alternative apps and subscriptions. Apple’s shares fell over 2% last week after an 8% gain the week before.
Market Focus:
Investors are closely watching Nvidia to see if it can rebound from last week’s losses. The broader market may follow Nvidia’s lead. Bitcoin has also faced a decline, dropping from over $72,000 earlier this month to below $62,000. Additionally, volatility increased slightly, closing above its 9 and 21-day moving averages at 13.20.
Tags
- #Nvidia
- #StockMarket
- #AIStocks
- #TechStocks
- #S&P500
- #Nasdaq
- #FederalReserve
- #EconomicData
- #EarningsReports
- #Apple
- #Bitcoin
- #MarketVolatility
- #Investing
- #StockRebalance
