Week of Record Highs and Lows
The stock market witnessed a rollercoaster week with the S&P 500 Index and Nasdaq Composite hitting record highs, contrary to the Dow Jones Industrial Average which struggled to maintain gains. The talk of the town revolved around inflation, as the consumer price index (CPI) and producer price index (PPI) readings both showed unexpected calmer figures. Investors also closely monitored the Federal Reserve’s decision to keep interest rates steady, with updated projections signaling a shift in the central bank’s rate-cut anticipations. Despite the Dow slipping into negative territory, the S&P 500 and Nasdaq emerged as winners with substantial gains.
Stocks Soaring to Heights
KKR & Co (KKR), CrowdStrike (CRWD), and GoDaddy (GDDY) are set to make a grand entrance into the S&P 500, while Arm Holdings (ARM) is about to join the Nasdaq-100 Index as of June 24, sending all stocks soaring to new peaks. Meanwhile, Eli Lilly (LLY), Oracle (ORCL), and Birkenstock (BIRK) all saw their shares skyrocket to all-time highs this week.
Technological Developments in Focus
Leaving the peaks aside, the tech realm brought attention to the chip sector’s moves. Broadcom (AVGO) reported a robust fiscal Q2 and announced a stock split, while Advanced Micro Devices (AMD) faced a downgrade from Morgan Stanley. Amidst all this, the excitement around artificial intelligence (AI) peaked with Apple (AAPL) unveiling a fruitful alliance with ChatGPT.
Transitioning to e-commerce stocks, Maplebear (CART), eBay (EBAY), and Sea (SE) were under the spotlight this week, alongside J.P. Morgan Securities initiating coverage on Shopify (SHOP) with an “overweight” rating.
What Lies Ahead?
Looking forward, anticipations are high for the economic data scheduled around the upcoming Juneteenth holiday, accompanied by enlightening Fed speeches providing insights into the central bank’s roadmap for the remainder of the year. As we await these developments, it’s crucial to keep in mind the potential support levels highlighted by Schaeffer’s V.P. of Research Todd Salamone and analyze the large-cap outperformance trend under the lens of Schaeffer’s Senior Quantitative Analyst Rocky White.
