The Nasdaq Composite reached a historic peak on Friday, boosted by strong performances from megacap tech stocks. The tech-focused index rose 0.56%, closing at 18,518.61. In contrast, the S&P 500 fell slightly by 0.03% to 5,808.12, while the Dow Jones Industrial Average dropped 259.96 points, or 0.61%, to end the day at 42,114.40.
Tech Stocks Propel Nasdaq to Record Levels
Tech giants led the charge on Friday, with Nvidia adding 0.8%, alongside gains from Meta Platforms, Amazon, and Microsoft. These moves came as the sector gears up for upcoming earnings reports, sparking optimism among investors. Meanwhile, HCA Healthcare saw a sharp decline of nearly 9% after revealing that recent hurricane disruptions affected its earnings and full-year guidance. Colgate-Palmolive also faced a dip, with shares falling 4% after the company adjusted the low end of its sales outlook for the year.
Treasury Yields and Market Reactions
The 10-year Treasury yield eased from Wednesday’s three-month highs after breaking the 4.25% threshold, although it edged back up by three basis points to about 4.24% on Friday. Higher yields have added pressure to the stock market, creating a mixed landscape for equities.
Phillip Colmar, managing partner and global strategist at MRB Partners, commented on the interplay between earnings and yields. “Yields have risen meaningfully, and so I think that’s been an issue for the equity market,” Colmar said, adding that while positive earnings typically boost stocks, the impact of rising bond yields has added a layer of uncertainty. “That has caused a lot of uncertainty and you’re getting some just kind of digestion.”
Weekly Recap: S&P 500 and Dow End Streaks as Nasdaq Continues to Climb
Friday’s moves capped a mixed week for Wall Street. Both the S&P 500 and Dow ended their six-week winning streaks, with the S&P down nearly 1% on the week and the Dow down 2.7%. In contrast, the Nasdaq marked its seventh consecutive weekly gain, advancing by 0.2% as it benefited from tech sector strength. Tesla’s post-earnings rally earlier in the week also provided a lift to both the Nasdaq and the S&P 500.
With tech stocks leading the market and yields impacting equities, the upcoming earnings season will likely set the stage for the market’s next moves.