Wall Street closed out the holiday-shortened trading week on a high note, with tech stocks taking the lead. The Dow Jones Industrial Average saw a modest gain of under 1% for the week, while the S&P 500 and Nasdaq both reached record highs on Friday, rising nearly 2% and 3.5%, respectively.
The first week of July continued the momentum seen in June, the second quarter, and the first half of 2024. The standout performer of the week was the S&P 500 technology sector, with top Club stocks like Apple and Broadcom leading the way. Consumer discretionary and communication services, featuring Club names Meta Platforms and Alphabet, also showed strength.
However, energy stocks led to the downside this week, followed by health care and industrials. Despite this, the overall market sentiment remained positive, with investors optimistic about the future.
One key highlight of the week was the quarterly results from Club holding Constellation Brands, the brewer behind Corona and Modelo. While the initial reaction to the results was positive, concerns about the company’s wine and spirits business weighed on the stock later in the week.
The week also saw updates on the economy, with the government’s monthly jobs report supporting the case for the Federal Reserve to cut interest rates at its upcoming meetings. Additionally, data on the manufacturing sector pointed to a faster-than-expected contraction, further bolstering the case for rate cuts.
Looking ahead, investors will be keeping a close eye on upcoming earnings reports, particularly from big banks like Wells Fargo. Key economic data on consumer and wholesale inflation will also be released, providing further insights into the state of the economy.
Overall, despite some challenges in certain sectors, Wall Street ended the week on a positive note, setting the stage for what promises to be an eventful earnings season ahead.
