A Positive Week for the Major Indices
It was a positive week for Wall Street. Both the S&P 500 and the Dow Jones rose more than 1%, and the Dow reached a new record close on Thursday. The Nasdaq 100 advanced half a percentage point over the week. Small-cap companies, by contrast, retreated from their all-time highs rather than extending them.
At the sector level, the gains were led by the communications and financial sectors. The laggards were real estate and utilities, which trailed the rest of the market.
Memory Stocks Among the Week's Worst Performers
Memory-related stocks were among the worst performers on the S&P 500 this week. Major chip and storage makers reacted to the recent correction across the semiconductor sector. This happened despite strong long-term demand driven by artificial intelligence — the fundamental demand picture remains solid, but investor sentiment cooled significantly over the short term.
That cooling sentiment weighed heavily on companies tied to memory. Micron closed the week with a 15% drop, while SanDisk lost 17%. Other businesses linked to memory were similarly affected.
Meta Shines on AI Compute Plans
Meta stood out this week after Bloomberg reported that the company was planning to market its excess computing power for artificial intelligence. The news boosted Meta's stock, which gained 6% over the week.
However, the same news put pressure on other AI infrastructure companies, since Meta selling spare compute could compete with dedicated providers. As a result, CoreWeave fell about 15% and Nebius dropped 11% during the week, even as Meta itself rose.
Palantir Partners with Nvidia
Palantir had a solid week after announcing a partnership with Nvidia to implement advanced artificial intelligence models in secure environments for governments and businesses. The deal helped extend a multi-session rally for the stock. Notably, this strength came even during a week when many technology stocks posted losses. Palantir ended the week with a 15% gain.
What to Watch Next Week
Looking ahead, several quarterly earnings reports will be in focus, including those from Levi Strauss, PepsiCo, and Delta Airlines.
On the economic front, investors will be closely watching a range of data releases: PMI figures, imports and exports, existing home sales, and the weekly jobless claims report.
