In a week where big tech took center stage, the Nasdaq stole the spotlight by notching an impressive 5-day streak of record closes. The tech-heavy index eked out yet another all-time high on Friday, capping a banner week that saw the S&P 500 log four straight records of its own.
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It was a fitting crescendo fueled by the continued dominance of technology's biggest titans. Apple flexed its AI muscles, outlining an ambitious strategy that has investors salivating over the iPhone maker's potential in the red-hot artificial intelligence space. Not to be outdone, Elon Musk scored a major victory as Tesla shareholders overwhelmingly reapproved his controversial pay package, brushing aside opposition from some heavyweight investors.
The week's bullish momentum propelled the Nasdaq to a staggering 3% gain, while the S&P 500 tacked on a solid 1.5% advance. The Dow Jones industrial average was the relative laggard, slipping into the red as ongoing concerns persisted over the breadth and durability of 2024's rally.
Powering the tech-led charge was an unexpected cooling in wholesale inflation that has market watchers hopeful upcoming readings on consumer prices will similarly moderate. With the Federal Reserve laser-focused on wrestling down stubbornly high inflation, such disinflationary signs add fuel to growing expectations for interest rate cuts later this year.
The Fed itself dialed back projected rate cut expectations this week, downgrading its forecast to just a single quarter-point reduction in 2024 from three previously. The mixed messaging injected some uncertainty into markets, keeping stocks vulnerable to abrupt swings in sentiment.
Whipsawing sentiment was evident in Tesla's shares, which gave up 2% on Friday even as shareholders handed Musk a decisive 77% approval for his pay plan worth a potential $700 billion. Ever a lightning rod, the eccentric billionaire's windfall divided shareholders and drew rebukes from corporate governance critics over excessive compensation.
Cashing in on the week's upbeat tech vibes was software giant Adobe, which saw its stock surge nearly 15% after projecting a boom in AI-related sales. The optimistic forecast underscored how companies pivoting to capitalize on generative AI's growth potential are being richly rewarded by investors.
While US stocks ended the week on an exuberant note, storm clouds gathered across the Atlantic as European equities slumped on fears that France's upcoming snap elections could hand power to far-right populist factions. Such a political shift would almost certainly roil markets on the continent and beyond.
For now though, America's unshakeable faith in technological progress and innovation reigns supreme on Wall Street. With the Nasdaq's march into record territory showing no signs of abating, the torch burning brightest remains firmly in the grasp of tech's elite.