Investment Week at a Glance
Stocks finished higher for the week. The Dow Jones Industrial Average rose 3.8%, the S&P 500 was up 3.4%, and the NASDAQ rose 4.2%. Foreign stocks (MSCI EAFE) were also up, rising 2.0%. Bond prices were up for the week, with the 10-year U.S. Treasury ending the week at 4.28%. (Data source: Wall Street Journal)
S&P 500 & NASDAQ Hit All-Time Highs
The S&P 500 and NASDAQ both hit all-time highs on Friday, as the summer rally continued. Less than three months ago markets had fear of recession and the impact of tariff policy which nearly sent the S&P 500 into bear market territory. Since then markets have moved higher as economic data continues to be strong and trade deals have been reached with some key countries. The most recent move higher can be attributed to geopolitical tensions in the Middle East easing and oil prices falling back down after their spike on the news of the attacks.
Fed Poised to Cut Rates This Year
The Fed left rates unchanged in June and projects that they will cut two times this year. However, the market currently is pricing in three rate cuts by the end of the year. The Fed may be back front and center in the news as other news headlines have begun to fade. The market is also giving the probability of no rate cuts at 0.5% so no rate cuts this year would be a big surprise to investors. The Fed also showed ongoing rate cuts in 2026 and 2027 with a long-term fed funds rate of 3.0%.
Nike Stock Rises 15%
Nike stock rose on Friday as CEO Elliott Hill said the company has emerged from the worst of its slump. He stated that the earnings results were not up to Nike’s standard but that their turnaround plan would improve their business results. Despite the rise in the stock Friday, Nike is still down for the year. The stock is also down over 26% in the past 5 years and down roughly 60% from its peak in November of 2021. Investors will be hopeful the turnaround plan, which Nike calls “Win Now”, can turn around the company’s performance. (CNBC)
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Quiz
How much is the technology sector up since the bottom on April 8th? (Scroll Down for Answer)
- 17%
- 29%
- 34%
- 41%
Answer:
4. 41%. Technology has been the leading sector since the bottom on April 8th. Despite the strong bounce, technology is still not the top sector for the year as industrials are currently the best performing.
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