Major U.S. stock indices ended the week on a high note, with the S&P 500 and Nasdaq hitting new all-time peaks. The rally was fueled by strong performances from tech leaders—particularly Apple and AMD—as well as positive sentiment surrounding AI and renewed investor confidence in growth sectors.
Analysts pointed to Apple’s surge, partly driven by its $100 billion domestic manufacturing pledge, as a catalyst for broader tech optimism. AI-related stocks, including AI chipmakers, continued to shine amid speculation about more government support and rising digital demand.
Despite broader market strength, companies like Crocs and Under Armour saw steep drops following earnings outlook revisions and disappointing guidance.
Jewelry makers and consumer-centric firms took a hit after earnings, while Caterpillar missed Q2 estimates, citing tariffs as a key headwind. Meanwhile, biotech firm Eli Lilly saw its stock slide after trial results dampened enthusiasm despite strong financial performance.
By contrast, Groupon shares soared over 20% after surprising investors with a strong earnings beat, showcasing the market’s split sentiment.
The week’s performance highlighted growing divergence: exuberance around certain tech and AI segments versus caution in retail and industrial sectors. Market watchers are eyeing the upcoming Fed announcements and geopolitical signals—especially U.S.–China trade tensions—for direction.
Looking ahead, investors will monitor earnings updates, tariff negotiations, and macro data that could shift expectations. Can tech’s strength sustain the rally, or will cracks emerge in consumer and manufacturing sectors? The answer could define the next market phase.
