US stocks closed a strong week on a slightly lower note, but investors were still celebrating as it was one of the best weeks of the year for markets. The Dow Jones Industrial Average dropped 306 points on Friday, not quite reaching the coveted 40,000 threshold. Despite this, the blue-chip index had its best week since December, with all three major indexes hitting record highs on multiple consecutive days. The S&P 500 fell slightly on Friday, but the Nasdaq reached a new high.
The surge in artificial intelligence stocks and projections from the Federal Reserve for three interest rate cuts contributed to the record highs this week. In corporate news, performance wear companies faced challenges as Lululemon and Nike experienced stock drops after issuing weak forward guidance and reports of slowing sales in China. Reddit also saw a decline in its shares after a strong debut on the New York Stock Exchange. However, Apple investors were relatively unfazed by an antitrust suit brought against the company by the Department of Justice.
Investors also approved a deal on Friday to make Truth Social owner Trump Media a publicly traded company. This decision clears a major hurdle for a long-awaited merger that is expected to benefit former President Donald Trump financially. While this approval may not impact his legal challenges, it marks a significant development for the company and its shareholders. Despite the approval, not all shareholders were in favor of the deal, as Digital World Acquisition Corp. saw a drop in its stock price on Friday.
Overall, the S&P 500, the Dow, and the Nasdaq all saw gains for the week. The S&P 500 rose 2.3%, the Dow increased by about 2%, and the Nasdaq gained 2.9%. The tech-heavy Nasdaq set a new record on Friday at 16,428.82. Despite finishing the week on a slightly lower note, the overall performance of the stock market was strong, with several factors contributing to the positive momentum. Investors will be closely watching how these trends continue in the coming weeks and months, as economic projections and corporate news continue to influence market fluctuations.
