AI Surge Powers S&P 500: Weekly Gains Despite Friday Dip. Despite a slight drop on Friday, the S&P 500 recorded a 1.6% gain for the week, buoyed by positive economic data and a cooling inflation number. This comes as a notable achievement for the broad-based index, which experienced a four-day streak of record-setting highs before the week’s close.
The S&P 500 is expected to open flat on Monday after its successful run last week. The index’s rise was largely supported by the belief that inflation is cooling, which bolstered investor confidence. While Friday ended with a minor loss, breaking the streak of consecutive record highs, the overall performance for the week remained strong.
In contrast, the Nasdaq Composite outperformed by maintaining its upward momentum throughout the week, closing at record highs for five straight sessions. This tech-heavy index benefited significantly from the surge in technology stocks, particularly those involved in artificial intelligence (AI). Investors continue to bet heavily on the transformative potential of AI, which has driven significant gains in the sector.
Meanwhile, the Dow Jones Industrial Average lagged behind, closing the week in the red. Traditional sectors such as banking and airlines failed to attract investor interest. The spotlight remained firmly on select technology stocks, reflecting a broader market trend. Big Tech companies, propelled by AI innovations, have cemented their dominance in the stock market.
Leading the charge was Nvidia (NVDA), whose impressive performance has lifted the tech sector as a whole. Competitors are racing to introduce their AI technologies, with Apple (AAPL) recently unveiling Apple Intelligence. This focus on AI has seen the six largest companies in the S&P 500 account for nearly 30% of the index’s total weight, underscoring the sector’s influence on market dynamics.
In summary, while traditional sectors struggled to gain traction, technology stocks, especially those tied to AI advancements, drove the S&P 500’s robust performance last week. As the market opens for a new week, all eyes remain on the tech sector to see if it can sustain its upward trajectory. AI Surge Powers S&P 500: Weekly Gains Despite Friday Dip.
