Market Overview
U.S. stocks ended mixed on Friday, with the S&P 500 and Nasdaq Composite dipping slightly while the Dow Jones Industrial Average advanced. Despite the day’s modest moves, all three major indexes logged weekly gains supported by optimism over potential Federal Reserve rate cuts.
- S&P 500: Down about 0.1% after hitting a record high earlier in the session.
- Nasdaq Composite: Fell 0.3%.
- Dow Jones Industrial Average: Gained 119 points, or 0.3%, driven by a sharp rise in UnitedHealth shares.
Sector and Stock Highlights
UnitedHealth Surge
UnitedHealth shares jumped nearly 14% after regulatory filings revealed a new stake by Berkshire Hathaway valued at approximately $1.6 billion. The rally contributed significantly to the Dow’s gains.
Semiconductor Weakness
Chip-related stocks weighed on the broader market:
- Applied Materials fell about 14% after issuing a revenue and earnings outlook below analyst expectations for the current quarter.
- Nvidia slipped 2%, while the VanEck Semiconductor ETF declined 2%.
Other Movers
- Chipotle rose over 5% for the week, snapping a five-week losing streak.
- Cava fell more than 18% week to date, marking its worst weekly performance on record.
Economic Data
July retail sales increased 0.5%, matching forecasts. Sales excluding autos rose 0.3%. Gains were led by motor vehicle sales and home furnishings, while building materials and miscellaneous retailers posted declines.
The University of Michigan’s August consumer sentiment index dropped to 58.6 from 61.7 in July, marking its first decline in four months. Survey respondents cited increased concerns about inflation, with one-year and five-year inflation expectations each rising 0.5 percentage points.
Weekly Performance
For the week:
- Dow Jones Industrial Average: +2%
- S&P 500: +1%
- Nasdaq Composite: +1%
The gains followed cooler-than-expected consumer price data, fueling expectations for the Fed to begin cutting interest rates as early as September.
Analyst Views
Market strategists noted that while seasonal factors in August and September can weigh on equities, optimism over an “AI boom” and potential rate cuts could keep stocks trending higher. Some analysts believe current market conditions mirror past “soft landing” scenarios when rate cuts helped sustain economic growth.
Related Coverage
- Economy & Market – https://idahonews.co/economy-market/
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