HomeInvestmentsETFMarket Mystery: S&P Plummets but Soars to Year's Highest Gain

Market Mystery: S&P Plummets but Soars to Year’s Highest Gain


  • SUMMARY

U.S. stocks ended mostly lower on Friday, but the S&P 500 notched its biggest weekly gain of 2023.

The S&P 500 index, which represents the broad U.S. stock market, rose by more than a tenth of a percent for the week.

This rally was driven by a signal from the Federal Reserve, which indicated on Wednesday that it plans to continue raising interest rates three times this year.

Despite the positive performance of the S&P 500, not all sectors of the market performed as well.

The Dow Jones Industrial Average, a measure of 30 large companies, shed 3/4 of a percent for the week.

And the technology-heavy NASDAQ Composite Index ticked up only slightly, by more than a tenth of a percent.

Some analysts believe that the sideways trading of mega-cap technology stocks, such as Apple and Microsoft, could indicate a healthier market.

This has allowed for more attention and performance to spread to other industries, including financials and industrials.

This suggests optimism for the rest of the year.

In company news, shares of Nike fell sharply after the company warned of declining revenue in the first half of fiscal 2025.

Lululemon shares also slid significantly after the company forecasted lower-than-expected annualrevenue and profit.

On the positive side, shares of shipping company FedEx surged by about 7.5% after the company exceeded Wall Street’s expectations for quarterly profit.


  • Key Takeaways



The S&P 500 had a strong week, notching its biggest weekly gain of 2023.

The index rose by more than a tenth of a percent for the week, driven by a signal from the Federal Reserve that it plans to continue raising interest rates three times this year.

Not all sectors of the market performed as well as the S&P 500.

The Dow Jones Industrial Average fell 3/4 of a percent for the week, and the NASDAQ Composite Index ticked up only slightly.

Some analysts believe that the sideways trading of mega-cap technology stocks could indicate a healthier market.

They point to the fact that smaller stocks may have a stronger year and signal optimism for the economy overall.

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