The Dow and S&P 500 reached new closing highs on Friday, fueled by a surge in technology stocks. Netflix spearheaded the rally, soaring 11% after exceeding subscriber growth forecasts. Apple also climbed following reports of a substantial increase in iPhone sales in China.
The Dow Jones Industrial Average rose by 1%, while the S&P 500 gained 0.4%. The tech-heavy Nasdaq Composite outperformed both, adding 0.6%. This marks the sixth consecutive week of gains for all three major indexes.
While technology remains a dominant force in the market’s upward trajectory, other sectors are also exhibiting strength. Michael Lansburg, Chief Investment Officer at Lansburg Bennett Private Wealth Management, highlighted the positive performance of financials, industrials, and utilities over the past quarter.
Lansburg emphasized the significance of this broader market participation, stating, “What we’ve seen is whether it’s financials, industrials, utilities have been a great story in the last 90 days. You’re seeing some broadening out here um of leadership. I think that’s important because what often happens is if leadership is narrow, I think investors start to chase the leadership and then they find out they’re very concentrated and they’re not diversified. So, I think it’s positive that you’re starting to see that.”
Adding to the optimistic sentiment, the Russell 2000 index, which tracks small-cap stocks, finally joined the rally after a prolonged period of underperformance.
However, not all companies enjoyed a positive Friday. American Express shares declined 3% after missing quarterly revenue expectations. CVS Health also experienced a 5% drop following a CEO transition and the withdrawal of its 2024 profit forecast.
