The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) closed at unprecedented levels throughout the week, contrasting with the Dow Jones Industrial Average (DJIA) which faced downward pressure. The market was abuzz with inflation data making headlines, as both the consumer price index (CPI) and producer price index (PPI) readings turned out to be milder than anticipated on Wednesday and Thursday respectively. Additionally, the Federal Reserve maintained the status quo on interest rates, revising its 2024 rate-cut projections downwards from three to one. By week’s end, the Dow saw a decline, while the S&P 500 and Nasdaq experienced substantial gains.
Noteworthy Stock Achievements
KKR & Co (KKR), CrowdStrike (CRWD), and GoDaddy (GDDY) are poised to make their debut in the S&P 500, while Arm Holdings (ARM) is slated to join the Nasdaq-100 Index (NDX) from June 24. Following these announcements, all mentioned stocks surged to record highs, with CRWD standing out with strong support leading up to the inclusion. This week also witnessed pharmaceutical giant Eli Lilly (LLY), tech stalwart Oracle (ORCL), and footwear brand Birkenstock (BIRK) all hitting historic peaks in trading.
Technological Sector Updates
Apart from ARM’s notable ascent, the chip sector saw other developments. Broadcom (AVGO) reported robust earnings for the fiscal second quarter and declared a 10-for-1 stock split. On the flip side, Advanced Micro Devices (AMD) faced a downgrade from “overweight” to “equal weight” by Morgan Stanley. Much of the industry focus remains on artificial intelligence (AI), exemplified by Apple’s (AAPL) recent collaboration with ChatGPT.
Shifting the focus to e-commerce, Maplebear (CART), eBay (EBAY), and Sea (SE) captured attention this week, with SHOP receiving an “overweight” rating from J.P. Morgan Securities.
Upcoming Events to Watch
As the market gears up for the Juneteenth holiday next week, a slew of economic data releases and Fed speeches are on the calendar, offering further insights into the central bank’s policies. For investors, Schaeffer’s V.P. of Research Todd Salamone highlights two critical support levels to monitor, while Senior Quantitative Analyst Rocky White emphasizes the prevailing trend of large-cap outperformance in 2024 and its future trajectory.