What’s going on?
The Nasdaq hit a new record high for the fifth consecutive year, driven by gains in tech stocks such as Adobe. stockThe index rose 21.32 points, or 0.12 percent, to close at 17,688.88.
What does this mean?
Adobe shares rose 14.5% after the company raised its full-year earnings forecast. Revenue Amazon.com Inc. posted better-than-expected profits thanks to rising demand for its AI-powered software. Nvidia also rose 1.8%, briefly overtaking Apple to become the world’s second-largest company by market capitalization. But the overall market signals were mixed. The S&P 500 fell slightly, 2.14 points, or 0.04%, snapping its record high streak, while the Dow lost 0.15%. For the week, the S&P 500 rose 1.6% and the Nasdaq rose 3.2%, while the Dow lost 0.5%.
Why should you care?
For markets: Technology is leading the way, but not every sector will follow suit.
The S&P 500 technology sector rose 0.5% to a record high, and communication services added 0.6%, but industrials slid 1%. Small-cap stocks also lagged, with the Russell index down 1.6%. The disparity between the sectors suggests underlying weakness, and Adam Sirhan of 50 Park Investments notes that many areas are underperforming despite the rally in tech stocks.
Overall picture: Investor sentiment is mixed amid economic uncertainty.
BofA Global Research reported outflows of $2.6 billion from U.S. value stock funds, while U.S. growth stock funds saw inflows of $1.8 billion. tendency That reflects cautious sentiment among investors amid mixed economic data. consumer The sentiment index fell to 65.6 in June, well below expectations, while the Federal Reserve’s outlook signaled cautious optimism about the economic outlook in May. inflation Data, currently only one prediction interest We will cut interest rates within this year, not three times this year.
