US Stocks End Week High Amid Continued Inflation and Apple AI Hype – UBJ – United Business Journal

U.S. stocks saw mixed performance this week, ultimately finishing mostly higher despite Friday’s close. The positive momentum was largely driven by the technology sector, driven by advances in artificial intelligence (AI) and strong performance reports from major companies such as Broadcom and Adobe. The Nasdaq 100 index hit record highs during the week, fueled by enthusiasm around artificial intelligence technology.

The broader S&P 500 index also hit record highs earlier in the week, posting gains for four straight days. Despite declines on Friday, the index ended the week up about 1.5%. Meanwhile, the Dow Jones Industrial Average, which has less exposure to technology stocks, ended the week down about 0.5%.

Investor sentiment was influenced by comments from Federal Reserve officials pointing to a potential shift toward lower interest rates if inflation continues to decline. Statements from outgoing Fed Chair Loretta Mester and current Fed Chair Austan Goolsbee highlighted the favorable May CPI report, suggesting progress in curbing inflation.

Market watchers saw significant moves in tech stocks following Apple’s artificial intelligence announcements at the Worldwide Developers Conference (WWDC) and solid earnings reports from Broadcom and Adobe. Strong performance in the technology sector underscored broader market optimism, despite persistent concerns about inflation and interest rates.

Looking ahead, investors are cautiously optimistic about the market’s growth prospects, especially given potential adjustments to Fed policy. Morgan Stanley highlighted the importance of selective stock selection in the current environment, identifying 37 high-growth, lower-volatility stocks for potential investments.

In the case of raw materials, West Texas Intermediate crude oil and Brent crude oil recorded slight declines, while gold prices increased. The 10-year Treasury yield fell, and Bitcoin also saw a moderate decline.

Overall, the U.S. stock market continues to navigate a complex landscape shaped by economic data, Federal Reserve policy signals and sector-specific factors, with technological innovations and artificial intelligence playing key roles in shaping investor sentiment and market performance.

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