Market Recap - Broader market strength offsets AI-related weakness

The stock market finished a volatile week with mixed results, as sharp swings in technology and AI-related stocks contrasted with a stronger showing across much of the broader market. The S&P 500 declined 0.5% and the Nasdaq Composite fell 0.7%, while the DJIA gained 0.4%. The Russell 2000 outperformed with a 2.0% advance, while the S&P Mid Cap 400 finished unchanged.

Third-quarter earnings were a central influence on the week's trading, particularly as investors reassessed the costs and growth prospects of the AI infrastructure buildout. An early rebound in semiconductor stocks struggled to maintain momentum before encouraging earnings developments briefly restored technology leadership Wednesday. That optimism faded sharply Thursday as renewed concerns about capital expenditures, financing requirements, and profitability sparked another selloff across AI-related stocks.

Meta Platforms was a notable source of pressure following its earnings report. Despite better-than-expected revenue and underlying earnings, the company faced substantial selling as investors focused on elevated AI spending, negative free cash flow, and contracting operating margins. The reaction reinforced concerns about the returns on increasingly expensive AI investments.

The information technology sector declined 0.3%, with software stocks a notable exception. The communication services sector (-6.2%) suffered the largest weekly decline, pressured by weakness in Meta and traditional wireless providers, while the industrials sector (-1.9%) also struggled amid selling in AI-related power infrastructure stocks.

Despite the technology-related weakness, market participation was considerably healthier than the major averages suggested. The S&P 500 Equal Weighted Index gained 1.1%, outperforming the cap-weighted index. Seven of the 11 S&P 500 sectors finished higher, led by the energy (+1.6%) and health care (+1.5%) sectors. The real estate (+0.9%), utilities (+0.8%), and financials (+0.7%) sectors also advanced, reflecting continued buying interest outside the market's largest growth stocks.

Treasury yields provided some relief, with the 10-year note yield declining 11 basis points to 4.99%, falling below 5.00% for the first time since September 22. The retreat helped support rate-sensitive areas, including homebuilders. Meanwhile, crude oil prices remained volatile amid shifting developments surrounding the U.S.-Iran conflict, ultimately rising just under $4 per barrel for the week and contributing to strength in the energy sector.

Overall, the week's action highlighted a growing divergence between the market's largest AI-related companies and the broader market. While questions surrounding the costs and returns of AI investment continued to weigh on technology stocks, strength across smaller companies and several other sectors helped limit the major averages' losses. Those concerns will remain in focus next week as earnings season accelerates, with results from Amazon, Microsoft, and Alphabet offering further insight into AI spending and profitability.

• Russell 2000: +2.0% week-to-date

• DJIA: +0.4% week-to-date

• S&P Mid Cap 400: unchanged week-to-date

• S&P 500: -0.5% week-to-date

• DJIA: -0.7% week-to-date

Market Recap - Broader market strength offsets tech weakness

The major averages finished higher for the week, supported by a broadening of market leadership that helped offset a sharp retreat in semiconductor and other AI-related stocks. The S&P 500 gained 1.2%, the DJIA advanced 0.9%, and the Nasdaq Composite rose 0.6%. Smaller companies lagged, however, with the Russell 2000 falling 0.9%, while the S&P Mid Cap 400 finished unchanged.

The week began on a strong note, with technology and mega-cap growth stocks helping drive the major averages higher before participation broadened considerably. The Nasdaq Composite reached fresh record highs on Monday and Tuesday, while the S&P 500 established its first record high since August 13 on Tuesday and closed above 7,800 for the first time. Gains across ten of the eleven S&P 500 sectors during both sessions represented a meaningful departure from the narrow leadership that had characterized much of the market's recent action.

That improvement in participation ultimately became one of the week's defining features. The S&P 500 Equal Weighted Index gained 1.6%, outperforming the cap-weighted S&P 500. Nine of the eleven S&P 500 sectors finished higher, with several defensive and economically sensitive areas providing the strongest support. The consumer staples (+4.0%) and utilities (+3.9%) sectors led the standings, while the energy (+3.6%), consumer discretionary (+3.1%), health care (+2.8%), and financials (+2.3%) sectors also posted sizable gains.

The broad strength contrasted sharply with weakness across semiconductor and other AI-related stocks, particularly during the second half of the week. Questions surrounding the revenue growth supporting the AI infrastructure buildout intensified Thursday following a Financial Times report concerning OpenAI's annualized revenue, prompting a pronounced retreat across chipmakers and related names. The information technology sector slipped 0.3%.

Treasury yields remained elevated but provided some relief as the week progressed. The 10-year note yield briefly climbed to 5.36% on Wednesday, reaching a fresh high for the year before strong demand at Treasury auctions and a subsequent retreat in crude oil helped reverse some of the pressure. The 10-year yield ultimately finished four basis points lower for the week at 5.24%, while the 2-year yield declined three basis points to 4.79%. The pullback offered some support for rate-sensitive areas, although the Russell 2000's weekly decline demonstrated that smaller companies continued to face headwinds.

Crude oil was another source of volatility as developments surrounding the U.S.-Iran conflict and the Strait of Hormuz continued to influence prices. WTI declined early in the week amid improving Middle Eastern export flows before surging Thursday as reports of renewed attacks on tankers raised concerns about supply disruptions. Prices subsequently retreated from their intraday highs following comments from President Trump indicating that the U.S. was engaged in productive discussions with Iran and would not launch additional strikes before the November elections. WTI ultimately finished the week just under $1 per barrel higher, helping the energy sector post one of the week's strongest gains.

Friday's advance provided a favorable conclusion to the week, with nine S&P 500 sectors finishing higher and both small- and mid-cap stocks participating despite continued semiconductor weakness. Company-specific developments also played an important role, particularly in the real estate sector, where communications tower operators rallied on expectations for increased demand tied to SpaceX's expansion into terrestrial wireless services.

Overall, the week marked a notable shift away from the market's recent dependence on semiconductor and mega-cap technology leadership. The S&P 500 and DJIA posted solid gains, while the Equal-Weight S&P 500 outperformed its cap-weighted counterpart. Although small-cap stocks remained under pressure and questions surrounding AI-related spending weighed on technology, stronger participation across most sectors left the broader market in better shape heading into the upcoming earnings season.

• S&P 500: +1.2% week-to-date

• DJIA: +0.9% week-to-date

• Nasdaq Composite: +0.6% week-to-date

• S&P Mid Cap 400: UNCH

• Russell 2000: -0.9% week-to-date

Market Recap - Tech Strength Offsets Rising Rate Pressure

The major averages finished mostly lower for the week as persistent pressure from elevated Treasury yields weighed on much of the market, while continued strength in semiconductor and other technology stocks provided an important offset. The S&P 500 slipped 0.3% and the DJIA fell 1.3%, while the Nasdaq Composite gained 0.5%. The Russell 2000 declined 0.2%, while the S&P Mid Cap 400 gained 0.5%.

Interest rates remained one of the market's most significant headwinds throughout the week. The 10-year note yield climbed 10 basis points to 5.28%, reaching its highest levels of the year even as expectations for another rate hike at the October FOMC meeting declined. Yields remained elevated early in the week before easing somewhat following dovish commentary from New York Fed President John Williams, who said there was "no need for urgency" following the Fed's September rate hike.

The rate outlook received another shift Wednesday, increasing expectations that the Fed will leave rates unchanged in October. That view received additional support Thursday as Fed Vice Chair Phillip Jefferson emphasized a patient, data-dependent approach, before Friday's September Employment Situation report showed just 29,000 new nonfarm payrolls and a slight increase in the unemployment rate to 4.2%. Despite those developments, longer-term Treasury yields remained elevated, leaving rates an important constraint on equities.

Technology stocks once again proved comparatively resistant to that pressure. The information technology sector gained 1.4%, helping the Nasdaq finish as the only major average with a weekly gain.

That leadership continued to mask weaker performance beneath the surface. The S&P 500 Equal Weighted Index fell 0.7%, compared with the 0.3% decline in the cap-weighted S&P 500, while eight of the 11 S&P 500 sectors finished lower. The health care (-2.7%) and financials (-2.5%) sectors were the weakest performers, while the consumer staples (-1.9%), real estate (-1.9%), communication services (-1.6%), and materials (-1.6%) sectors also recorded sizable declines.

Crude oil was another source of volatility as negotiations surrounding the U.S.-Iran conflict and the Strait of Hormuz remained in focus. WTI moved sharply in both directions during the week before finishing down roughly 1.5%. A coordinated G7 release of 100 million barrels through the IEA contributed to Friday's decline, although the energy sector still gained 1.4% for the week.

Friday provided a more encouraging finish after the softer employment report and lower crude oil helped all 11 S&P 500 sectors avoid losses. Small- and mid-cap stocks also outperformed the S&P 500 during the session, representing an improvement from the narrow participation seen through much of September. Still, the Equal-Weight S&P 500 trailed the cap-weighted index again on Friday, reinforcing the continued outsized influence of technology and the market's largest stocks.

Overall, the week extended the market's recent pattern of concentrated leadership. Semiconductor strength kept the Nasdaq higher and limited the S&P 500's decline, but weakness across most sectors and the Equal-Weight S&P 500 pointed to a softer underlying market. Cooler inflation and employment data reduced expectations for another near-term Fed rate hike, but the continued rise in longer-term Treasury yields prevented that shift from translating into broader relief for equities.

• S&P Mid Cap 400: +0.5% week-to-date

• Nasdaq Composite: +0.5% week-to-date

• Russell 2000: -0.2% week-to-date

• S&P 500: -0.3% week-to-date

• DJIA: -1.3% week-to-date

Market Recap - Tech leadership masks broader market weakness

The major averages finished mostly higher for the week as pronounced strength in semiconductor and mega-cap growth stocks outweighed a sharp midweek rise in Treasury yields and weakness across much of the broader market. The S&P 500 gained 1.2% and the Nasdaq Composite climbed 2.1%, while the DJIA advanced a more modest 0.3%, snapping a three-week losing streak. Small- and mid-cap stocks moved in the opposite direction, with the Russell 2000 falling 0.8% and the S&P Mid Cap 400 slipping 0.1%.

Technology was the primary source of support throughout the week. The information technology sector gained 3.1%, with renewed enthusiasm surrounding AI development and infrastructure spending. Mega-cap growth stocks also played an outsized role. That combination powered Monday's strong advance and helped the Nasdaq Composite reach fresh all-time highs on Tuesday.

The headline gains nevertheless masked considerably weaker performance beneath the surface. The S&P 500 Equal Weighted Index fell 1.0%, trailing the cap-weighted index by more than two percentage points, while small-cap stocks also finished firmly lower. The divergence was evident across the sector standings, where financials (-1.6%), real estate (-1.4%), and consumer discretionary (-0.5%) sectors declined despite the S&P 500's weekly gain. The utilities sector fell 3.2%, making it the week's weakest-performing sector.

Interest rates were a major factor behind that uneven participation. Treasury yields surged Wednesday after stronger-than-expected preliminary September PMI readings and hawkish Fed commentary reinforced expectations for additional policy tightening. The 10-year note yield jumped 14 basis points that session and continued higher Thursday, reaching 5.18%, before easing modestly on Friday. It still finished the week 16 basis points higher at 5.16%. The increase weighed particularly heavily on smaller companies and rate-sensitive areas even as technology stocks proved comparatively resistant to the backup in yields.

Crude oil provided a more favorable influence on the weekly picture despite substantial volatility. WTI began the week with a sharp decline amid hopes for diplomatic progress between the U.S. and Iran, then rebounded above $96 per barrel as negotiations surrounding the Strait of Hormuz remained uncertain. Encouraging developments later in the week helped crude reverse course again, leaving WTI down nearly 4% for the week. The decline contributed to a 3.0% loss in the energy sector but also helped alleviate some of the inflation-related pressure facing the broader market.

Other areas provided additional support, with the communication services sector gaining 2.2% and the health care sector rising 1.7%. Software stocks also participated in the technology advance.

Overall, the week produced solid gains for the cap-weighted S&P 500 and Nasdaq, but participation remained notably uneven. Semiconductor and mega-cap growth leadership was strong enough to overcome rising Treasury yields and weakness across many other areas, while the Equal-Weight S&P 500 and Russell 2000 finished lower. The late-week retreat in crude oil provided some relief from inflation concerns, but elevated yields and the prospect of additional Fed tightening remained important constraints on the broader market.

• Nasdaq Composite: +2.1% week-to-date

• S&P 500: +1.2% week-to-date

• DJIA: +0.3% week-to-date

• S&P Mid Cap 400: -0.1% week-to-date

• Russell 2000: -0.8 week-to-date

Market Recap - Oil Surge and Rate Uncertainty Keep Stocks in Check

The major averages finished a volatile week little changed as a sharp rise in oil prices and shifting expectations for monetary policy offset strength in semiconductor stocks and a midweek rebound. The S&P 500 gained 0.1% and the Nasdaq Composite rose 0.4%, while the DJIA slipped 0.3%. The Russell 2000 (+0.1%) and S&P Mid Cap 400 (+0.2%) also finished near their flatlines.

Oil was one of the week's most important influences. WTI crude surged roughly 10% as renewed hostilities between the U.S. and Iran and concerns surrounding the Strait of Hormuz pushed prices above $90 per barrel. The move pressured equities during the first two sessions of the week and helped the energy sector gain 2.3%, making it the strongest-performing S&P 500 sector.

Stocks began recovering Wednesday as oil prices and Treasury yields stabilized, and the rebound accelerated Thursday as easing yields and comments from Fed Governor Christopher Waller reduced some concern surrounding a September rate hike. Those gains were broad enough to erase most of the early-week losses, although Friday's stronger-than-expected Employment Report shifted rate expectations back in a more hawkish direction and interrupted the rebound. The 10-year note yield ultimately rose six basis points for the week to 4.78%.

Technology provided another important source of support, although performance within the sector was sharply divided. The information technology sector gained 1.1%. NVIDIA, Dell, and other AI-related names contributed to semiconductor strength throughout the week. Software stocks moved decisively in the opposite direction, however.

Outside technology and energy, performance was considerably weaker. The consumer discretionary sector fell 2.1%, while materials (-1.6%), real estate (-1.3%), and industrials (-1.1%) sectors also posted sizable losses. The financials sector finished unchanged.

Overall, the market showed little net movement despite substantial volatility beneath the surface. Rising oil prices and Treasury yields pressured stocks early in the week before greater stability in both helped fuel a broad rebound, while Friday's employment data renewed concerns about another Fed rate hike. Strength in semiconductor and energy stocks ultimately helped offset weakness across software and several economically sensitive areas, leaving the major averages close to where they began the week.

• Nasdaq Composite: +0.4% week-to-date

• S&P Mid Cap 400: +0.2% week-to-date

• Russell 2000: +0.1% week-to-date

• S&P 500: +0.1% week-to-date

• DJIA: -0.3% week-to-date

Market Recap - Rising Oil and Rates Pressure Stocks

The stock market finished lower this week as a sharp pullback across semiconductor and other momentum-oriented stocks combined with rising oil prices and elevated Treasury yields to pressure the major averages. The S&P 500 declined 1.4%, the Nasdaq Composite fell 2.1%, and the DJIA lost 0.9%. Small- and mid-cap stocks also retreated, with the Russell 2000 down 1.7% and the S&P Mid Cap 400 falling 2.5%.

Semiconductor stocks were at the center of the weakness. A strong start to the week quickly gave way to pronounced selling across memory, optical, and other AI-related names. Several rebound attempts failed to gain traction, leaving the information technology sector down 3.2% for the week. The industrials sector (-3.4%) also faced pressure as electrical equipment names continued to trade in sympathy with semiconductors.

Oil prices provided another meaningful headwind. WTI crude climbed roughly 5.4% as the expiration of the U.S.-Iran ceasefire and renewed threats of additional economic and military action kept geopolitical tensions elevated. The energy sector gained 2.5%, while higher oil prices contributed to upward pressure on Treasury yields and weighed on rate-sensitive and economically sensitive areas of the market.

There were still notable areas of relative strength. The materials sector advanced 2.3% as precious metals prices surged, while the health care sector gained 1.0% behind several strong company-specific catalysts. Friday's rebound also featured solid participation across financials and consumer stocks, but those gains were not enough to offset the weakness accumulated earlier in the week.

Interest rates remained an important part of the backdrop. The Treasury Department's announcement that it will increase liquidity-support buybacks of longer-dated securities briefly provided some relief midweek, helping rate-sensitive stocks rebound on Wednesday. That move proved temporary, however, as yields resumed their climb later in the week. The 2-year note yield rose six basis points to 4.23%, while the 10-year note yield increased four basis points to 4.74%.

Overall, the week reflected a continued unwind across semiconductor and AI-related momentum trades against a less favorable macro backdrop. Rising oil prices and Treasury yields added pressure to an already volatile technology complex, while strength in energy, materials, and select defensive areas provided only a partial offset. Friday's broad rebound improved the tone into the weekend, but the major averages still finished firmly lower ahead of another busy week.

• DJIA: -0.9% week-to-date

• S&P 500: -1.4% week-to-date

• Russell 2000: -1.7% week-to-date

• Nasdaq Composite: -2.1% week-to-date

• S&P Mid Cap 400: -2.5% week-to-date

Market Recap - Tech leads early August rally

Stocks rebounded sharply this week, with the S&P 500 (+3.6%), Nasdaq Composite (+5.2%), and DJIA (+3.0%) all posting strong gains as investors embraced another wave of encouraging corporate earnings, renewed leadership from artificial intelligence-related stocks, and easing geopolitical tensions in the Middle East. The rally extended well beyond the market's largest companies, with the Russell 2000 (+3.5%) and S&P Mid Cap 400 (+3.4%) also turning in impressive performances.

Technology regained its position as the market's primary leadership group after a difficult July. The information technology sector surged 7.2% for the week as semiconductor stocks staged a powerful rebound. Software shares also participated in the advance, as investors broadly rewarded stronger-than-expected earnings across AI infrastructure and enterprise software companies. The rebound was accompanied by renewed strength across the market's largest growth stocks. While several individual earnings reports generated sharp stock-specific moves throughout the week, the broader takeaway remained intact: investor confidence in AI spending and monetization improved considerably after last week's volatility, allowing growth-oriented stocks to reassert market leadership.

The rally was not confined to technology. Materials (+5.6%) ranked among the week's strongest sectors as precious metals prices climbed, while consumer discretionary (+2.8%) and industrials (+2.0%) also participated in the advance. Homebuilders stood out as one of the market's strongest industry groups. Declining Treasury yields later in the week improved the outlook for other interest-rate-sensitive industries.

A meaningful improvement in the geopolitical backdrop also supported risk appetite. Crude oil prices tumbled roughly 10.3% for the week after President Trump called off planned strikes against Iran, while reports throughout the week pointed toward continued negotiations aimed at reopening the Strait of Hormuz. Although oil briefly rebounded following renewed attacks in the Red Sea, investors increasingly viewed supply disruptions as less likely, leaving the energy sector (-3.3%) as one of the week's weakest performers.

Friday's July Employment Situation Report provided another important tailwind after showing essentially no payroll growth alongside sizeable downward revisions to prior months. The softer labor-market data prompted investors to scale back expectations for additional Federal Reserve tightening, sending Treasury yields lower and providing another boost to growth-oriented and other rate-sensitive areas of the market. That shift leaves next week's Consumer Price Index report as the market's next major catalyst, with investors looking for confirmation that inflation continues to cool enough to keep policymakers on hold.

• Nasdaq Composite: +5.2% week-to-date

• S&P 500: +3.6% week-to-date

• Russell 2000: +3.5% week-to-date

• S&P Mid Cap 400: +3.4% week-to-date

• DJIA: +3.0% week-to-date

Market Recap - AI trade gets some of its swagger back

The stock market endured another volatile week, yet the S&P 500 demonstrated impressive resilience, briefly eclipsing the 7,500 level on Friday before settling just below that mark. Investors navigated a busy week highlighted by the FOMC meeting, a flood of earnings reports, sharp swings in oil prices and Treasury yields, and renewed volatility across semiconductor stocks.

Although the Federal Reserve left the target range for the fed funds rate unchanged at 3.50%-3.75%, three dissents favoring a rate hike and Fed Chair Kevin Warsh's inflation-focused remarks tempered the market's initial relief rally. Meanwhile, the 10-year Treasury yield climbed from 4.60% early in the week to 4.75% on Friday as oil prices rebounded and inflation concerns persisted. WTI crude oil ultimately settled at $84.57 per barrel, gaining 21% during July.

Corporate earnings ultimately dictated market leadership. Semiconductor stocks remained under heavy pressure early in the week as investors questioned AI infrastructure spending and memory demand, but sentiment shifted dramatically after Microsoft's blowout results and optimistic outlook reignited enthusiasm for the AI trade. That reversal was aided by reports that hedge fund Situational Awareness had liquidated its public equity portfolio following steep losses in AI-related investments, a development many investors viewed as a clearing event after weeks of deteriorating sentiment.

The recovery gained further traction Friday when Amazon delivered another standout quarter, reinforcing confidence in AI-driven infrastructure spending and helping investors look past Apple's disappointing fiscal Q4 revenue guidance. Amazon's 15% surge, together with strong gains in Alphabet, Microsoft, and NVIDIA, carried the major indices higher despite rising Treasury yields, firmer oil prices, and only modestly positive market breadth.

Riding Amazon's gain on Friday, the consumer discretionary sector finished the week up 8.3%, leaving it at the top of the performance rankings. Next in line was communication services (+5.4%), consumer staples (+1.2%), and financials (+1.1%). Utilities (-4.2%) was the worst-performing sector.

On the economic front, second-quarter GDP growth slowed to 1.5%, but consumer spending remained resilient, initial jobless claims stayed below 200,000, and June PCE inflation moderated on a year-over-year basis. Even so, inflation remains well above the Federal Reserve's 2.0% target, leaving investors focused on the likelihood that monetary policy could remain restrictive for some time.

• Nasdaq Composite: +1.6% week-to-date

• S&P 500: +1.1% week-to-date

• DJIA: +1.0% week-to-date

• Russell 2000: +0.1% week-to-date

• S&P Mid Cap 400: -0.7% week-to-date

AI spending concerns pressure mega-cap stocks

The major averages finished lower this week as concerns surrounding the cost of the AI buildout weighed heavily on mega-cap growth stocks, overshadowing strength across semiconductor, energy, and several cyclical sectors. The Nasdaq Composite fell 2.1%, while the S&P 500 declined 0.6% and the DJIA lost 0.4%. Although earnings season produced a number of upbeat corporate results, investor attention increasingly centered on AI spending, rising oil prices, and higher Treasury yields.

The week's defining catalyst came Thursday following earnings from Alphabet and Tesla. Both companies outlined more aggressive investment plans, reinforcing expectations that hyperscalers will continue spending heavily on AI infrastructure while raising fresh questions about margins, free cash flow, and how quickly those investments will generate meaningful returns. The "Magnificent Seven" collectively shed roughly $800 billion in market capitalization during Thursday's session, driving sharp weekly declines in the communication services (-6.2%) and consumer discretionary (-6.1%) sectors.

The selling was far more concentrated among the companies funding the AI buildout than those supplying it. The information technology sector edged 0.4% higher. The contrast suggested investors remain constructive on AI infrastructure demand but are becoming more sensitive to the growing cost of that investment for the largest technology companies.

Oil prices provided another major theme throughout the week. WTI crude rose roughly 10.5% as escalating tensions involving the U.S., Iran, and Houthi forces fueled concerns about broader regional conflict and potential supply disruptions. The move pushed Treasury yields higher, increased expectations for Federal Reserve tightening, and created a more challenging backdrop for growth stocks.

Despite the weakness in mega-cap technology, leadership broadened elsewhere in the market. Energy (+3.8%) finished as the top-performing sector, while utilities (+2.5%) and industrials (+1.8%) also posted solid gains, helping limit the broader market's losses.

Overall, the week highlighted a subtle but important shift in the market's AI narrative. Demand for AI infrastructure remained robust, but investors became increasingly focused on the economics of the unprecedented capital spending required to support it. That distinction left the broader market only modestly lower while producing a much steeper decline across the Nasdaq and the largest growth stocks.

• DJIA: -0.4% week-to-date

• S&P 500: -0.6% week-to-date

• S&P Mid Cap 400: -0.9% week-to-date

• Russell 2000: -1.1% week-to-date

• Nasdaq Composite: -2.1% week-to-date

Semiconductor selloff overshadows favorable inflation data

The stock market navigated another eventful week, with inflation data, semiconductor volatility, geopolitical developments, and the highly anticipated SpaceX IPO all competing for investors' attention. By week's end, however, easing oil prices and improving market breadth helped the major averages secure modest gains, with the S&P 500 (+0.7%), Nasdaq Composite (+0.7%), and DJIA (+0.7%) all finishing higher.

One of the week's most notable developments was the market's reaction to inflation data. While both CPI and PPI contained some mildly encouraging elements, neither report materially altered expectations that the Federal Reserve will remain patient on rate cuts. Overall, inflation still remains elevated, reinforcing the view that progress toward the Fed's 2% target remains slow and uneven. Treasury yields ultimately finished the week lower, though investors were left with little reason to expect a significant shift in monetary policy anytime soon.

Technology stocks remained at the center of the action, though leadership within the sector was anything but smooth. Semiconductor stocks experienced multiple sharp reversals throughout the week, highlighted by abrupt selloffs on Tuesday and Wednesday that were followed by equally powerful rebounds later in the week. The sector's resilience contrasted with continued weakness in software stocks.

The week's most anticipated corporate event arrived Friday with SpaceX's public debut. The offering priced at $135 per share before opening at $150 and finishing its first session roughly 19% above the IPO price. While some market participants suggested the offering contributed to volatility across mega-cap technology stocks as investors repositioned portfolios and raised cash ahead of the debut, the successful launch ultimately served as another reminder of the strong appetite for growth-oriented and technology-related investments.

Geopolitical developments also played a major role throughout the week. Markets spent much of the first half of the week reacting to developments surrounding U.S.-Iran negotiations and periodic military escalations, which repeatedly influenced oil prices and investor sentiment. Ultimately, optimism surrounding a potential agreement between the two countries helped crude oil prices tumble roughly 7% for the week. That decline became a powerful tailwind for equities, supporting airlines, homebuilders, cruise operators, financials, materials, and other economically sensitive areas of the market. While the energy sector finished slightly lower for the week, falling oil prices helped ease inflation concerns and provided a supportive backdrop for risk assets more broadly.

Perhaps the most encouraging development for bulls was the continued broadening beneath the surface. While mega-cap growth stocks and technology names experienced bouts of volatility, leadership increasingly expanded into other areas of the market. The Russell 2000 (+3.9%) and S&P Mid Cap 400 (+2.8%) comfortably outpaced the major averages, while financials, materials, consumer staples, and real estate all posted solid gains. The improvement in participation suggests investors are becoming more willing to look beyond a handful of mega-cap technology stocks, even as AI-related themes continue to command significant attention.

In the end, the week served as a reminder that markets remain highly sensitive to both inflation and geopolitical developments. Yet despite choppy trading across many of the market's largest stocks, investors consistently bought dips in semiconductors, embraced the SpaceX debut, and rotated into a broader range of sectors. Combined with falling oil prices and declining volatility, that resilience was enough to keep the major averages in positive territory and leave the broader market on relatively solid footing heading into next week.

• Russell 2000: +3.9% week-to-date

• S&P Mid Cap 400: +2.8% week-to-date

• Nasdaq Composite: +0.7% week-to-date

• DJIA: +0.7% week-to-date

• S&P 500: +0.7% week-to-date