Key Market Events: Last Week's Gains and Major Highlights

Market Overview: Key Market Events from Last Week

The Nasdaq eked out a fifth straight record closing high on Friday following gains in Adobe and other technology-related shares, while the S&P 500 and Dow ended slightly lower. The S&P 500 ended its four-day run of record closing highs, but still climbed more than 1% for the week. The S&P 500 technology sector rose 0.5%, hitting another record high close.

The communication services sector rose 0.6%, leading gains among sectors.

Adobe shares jumped 14.5% a day after the company raised its annual revenue forecast on more demand for its artificial intelligence-powered software. "You've had a big rally this week, led by big-cap tech. Under the surface, we have a lot of areas acting weak," said Adam Sarhan, chief executive of 50 Park Investments in New York.

The Russell small-cap index fell 1.6%, adding to recent losses, while the S&P 500 industrials sector was down 1%.

Major Highlights from the Week

• Adobe: Shares surged 14.5% after the company lifted its annual revenue forecast.
• Nasdaq: Managed its fifth consecutive record closing high.
• S&P 500 and Dow: Ended slightly lower but with notable sector performances.
• Inflation and Interest Rates: Fed Bank of Chicago President Austan Goolsbee expressed relief over cooling inflation data but highlighted the need for further evidence before considering interest rate cuts.

The Dow Jones Industrial Average fell 57.94 points, or 0.15%, to 38,589.16. The S&P 500 lost 2.14 points, or 0.04%, at 5,431.6, and the Nasdaq Composite added 21.32 points, or 0.12%, at 17,688.88. For the week, the Dow was down 0.5%, the S&P 500 rose 1.6%, and the Nasdaq was up 3.2%.

Investors are still trying to gauge how soon the Federal Reserve might be able to cut interest rates. Fed policymakers recently dialed back their projections for three cuts this year to just one.

Economic Indicators and Sector Performance

In a report on Friday, a preliminary reading of the University of Michigan's Consumer Sentiment Index slipped to 65.6 in June, sharply lower than expectations. Nvidia shares ended up 1.8% after briefly surpassing Apple as the world's second-most valuable company. A BofA Global Research report showed U.S. value stock funds had $2.6 billion of outflows, while investors poured $1.8 billion into U.S. growth stock funds in the week to Wednesday.

Volume on U.S. exchanges was 10.12 billion shares, compared with the 12.10 billion average for the full session over the last 20 trading days. Declining issues outnumbered advancers on the NYSE by a 2.39-to-1 ratio; on Nasdaq, a 2.51-to-1 ratio favored decliners. The S&P 500 posted 11 new 52-week highs and 16 new lows; the Nasdaq Composite recorded 30 new highs and 192 new lows.

Looking Ahead: Key Market Events

Next week, investors will focus on upcoming economic data and earnings reports to gauge the market's direction. Key market events include:

• Retail Sales Data: Expected to provide insights into consumer spending and economic health.
• Fed Meeting Minutes: Will offer clues on the central bank's stance on interest rates and inflation.
• Earnings Reports: From major corporations will be scrutinized for performance and future guidance.

Stay tuned for further updates on these key market events and their potential impact on the financial markets.