The Nasdaq (QQQ) hit a new record on Friday, spurred by gains in large tech stocks as Treasury yields eased from their recent highs, helping to offset declines in other sectors. The Magnificent Seven group of stocks saw sharp increases, with Nvidia (NVDA) briefly overtaking Apple to become the world’s most valuable company. Meanwhile, Tesla (TSLA) extended its rally with a 2.6% increase following a strong surge in the prior session, while Microsoft (MSFT) and Apple also saw gains. However, losses in Goldman Sachs (GS) and McDonald’s (MCD) tempered the Dow (DIA) as the fast-food giant grappled with an E. coli outbreak.
Treasury yields, which had reached 4.26% earlier in the week, ended slightly lower on Friday, calming some investor nerves about inflation and rate hikes. The Nasdaq rose 1.2% for the week, though the S&P 500 (SPY) and Dow were on track to end their six-week winning streaks. As investor anticipation builds around upcoming results from major technology companies like Alphabet, Apple, and Microsoft, market sentiment is cautiously optimistic, with attention also on next week's nonfarm payrolls report. This comes amid expectations that the Federal Reserve may execute another 25-basis-point rate cut at its November meeting.
Market Overview:- Nasdaq reached a record high, buoyed by gains in tech megacaps like Nvidia and Tesla.
- Investors are closely watching Treasury yields as they slightly decline after hitting weekly highs.
- Upcoming earnings from Alphabet (GOOGL), Apple, and Microsoft set the stage for a pivotal week on Wall Street.
- Nvidia briefly overtakes Apple as the world’s most valuable company.
- Dow faces declines, affected by Goldman Sachs and McDonald’s struggles.
- Market activity influenced by Fed rate cut expectations and strong economic outlook.
- Investors await megacap tech earnings and the U.S. nonfarm payrolls report next week.
- Continued rate cut speculation as Fed’s November meeting approaches.
- Uncertainty around the U.S. election adds to cautious market sentiment.
As the Nasdaq breaks new ground, the easing of Treasury yields provides a supportive backdrop for stocks, especially for rate-sensitive tech giants. With Nvidia reclaiming its status as a top market leader and Tesla extending its rally, the market's focus shifts to the forthcoming earnings reports from Alphabet, Apple, and Microsoft, which are expected to reveal whether high-growth tech firms can sustain their performance amid lofty valuations.
Next week, with pivotal tech earnings and economic data releases on the horizon, investors will have fresh insights into the state of both corporate America and the U.S. economy. Amid these factors, the market is bracing for potential volatility as the U.S. election nears and monetary policy expectations evolve.
