Stocks saw strong early-week gains on optimism around U.S.-China trade developments and mega-cap earnings, sending the major averages to record-highs for the first three days of the week, though the major averages ended the week on a mixed note.

The Nasdaq Composite (+2.2% WTD), S&P 500 (+0.7% WTD), and DJIA (+0.8% WTD) captured weekly gains, while smaller-cap indices lagged, with the Russell 2000 (-1.4% WTD) and S&P MidCap 400 (-1.6% WTD) finishing lower. Early-week momentum was fueled by a U.S.-China trade deal framework and strong tech leadership.

Earnings were a major driver of sentiment. Amazon and Alphabet posted strong results, while NVIDIA’s conference announcements, including over $500 billion in chip orders through 2026 - supported tech gains. Meta’s report midweek weighed on sentiment due to higher AI spending plans.

Sector performance reflected the mega-cap leadership as the information technology (+3.0% WTD) and consumer discretionary (+2.8%) sectors led, while the consumer staples (-3.7%), real estate (-3.9%), and utilities (-2.6%) sectors lagged.

T he FOMC went through with a widely expected 25-basis point rate cut, though Fed Chair Powell’s post-FOMC comments dampened December rate-cut expectations, pushing the probability down to roughly 65%. Nonetheless, strong earnings, a booming AI investment cycle, and trade optimism helped maintain a broadly positive tone for the week.

• Nasdaq Composite +2.2% WTD

• DJIA +0.8% WTD

• S&P 500 +0.7% WTD

• Russell 2000 -1.4% WTD

• S&P MidCap 400 -1.6% WTD