Market Performance Overview
Amidst a tumultuous week, the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) achieved record closes, painting a picture of exuberance in the market. In stark contrast, the Dow Jones Industrial Average (DJIA) struggled, with most daily sessions ending lower. The week was defined by the release of inflation data, with the consumer price index (CPI) and producer price index (PPI) reports surprising with lower-than-expected figures. Additionally, the Federal Reserve’s decision to maintain unchanged interest rates while revising down rate-cut expectations from three to one for 2024 further added to the mixed market sentiments. As the week came to a close, the Dow slipped into negative territory, while the S&P 500 and Nasdaq recorded substantial gains.
Stocks Making Strides
The announcement of KKR & Co (KKR), CrowdStrike (CRWD), and GoDaddy (GDDY) joining the S&P 500, and Arm Holdings (ARM) becoming a part of the Nasdaq-100 Index (NDX) effective June 24 sparked a wave of euphoria in the market. Notably, all these stocks surged to record highs post the news, with CRWD enjoying robust support in preparation for its S&P inclusion. Furthermore, Eli Lilly (LLY), Oracle (ORCL), and Birkenstock (BIRK) each saw their stock prices hit unprecedented highs during the week, illustrating the bullish fervor among investors.
Technological Developments
In the tech realm, alongside ARM’s performance, the chip sector witnessed notable events. Broadcom (AVGO) posted a strong fiscal second-quarter report and announced a 10-for-1 stock split, while Advanced Micro Devices (AMD) faced a downgrade from “overweight” to “equal weight” by Morgan Stanley. Artificial intelligence (AI) took center stage, with Apple (AAPL) unveiling a new partnership with ChatGPT, underscoring the sector’s continued evolution.
Exploring E-Commerce and More
Taking a closer look at e-commerce, the spotlight shone on Maplebear (CART), eBay (EBAY), and Sea (SE) throughout the week. Additionally, J.P. Morgan Securities initiated coverage on Shopify (SHOP) with an “overweight” rating, injecting further optimism into the sector.
Upcoming Outlook
As the market heads into the upcoming week, with a holiday break for Juneteenth, investors can expect a flurry of economic data releases, alongside key Federal Reserve speeches providing insights into the central bank’s roadmap for the remainder of the year. Noteworthy analysis from industry experts offers guidance, with Schaeffer’s V.P. of Research highlighting critical support levels and Senior Quantitative Analyst discussing the trend of large-cap outperformance and its potential continuity in the future.