US stocks closed with little change on Friday, as the S&P 500 and Nasdaq capped a week of strong performances.
Key events included Apple’s (NASDAQ:AAPL) AI strategy and the approval of Elon Musk’s pay package at Tesla (NASDAQ:TSLA).
The Dow Jones Industrial Average dipped about 0.2%, while the S&P 500 edged just below the flatline. The tech-heavy Nasdaq Composite gained 0.1%, achieving its fifth consecutive record close.
For the week, the S&P 500 rose approximately 1.5%, while the Nasdaq surged over 3%. The S&P set record closes for four consecutive days, and the Nasdaq managed five straight, fueled by strength in tech stocks.
A surprise cooling in wholesale price pressures bolstered investor confidence in two potential interest rate cuts this year, as the decline is expected to influence the upcoming PCE inflation reading closely monitored by the Federal Reserve.
However, the Fed adjusted its forecast for rate cuts, reducing the expected number from three to one in 2024. This adjustment leaves the market uncertain and stocks susceptible to mood shifts.
The dominance of technology stocks has driven the overall gains, resulting in multiple record closes for the S&P 500 and Nasdaq throughout the week. Conversely, the Dow posted a weekly loss, raising concerns about the rally’s breadth.
Tesla shares dropped 2% on Friday after shareholders reaffirmed CEO Elon Musk’s pay package, with 77% of votes in favor despite opposition from some major investors.
European stocks also declined, dampening the market mood as investors worried about the potential impact of far-right political gains or a victory in France’s upcoming snap election.
In other notable movements, Adobe (NASDAQ:ADBE) shares surged nearly 15% following a positive AI sales projection from the Photoshop maker.
Featured Image – Freepik
