US stocks post weekly gains as Apple shares surge
What’s happening:-
Wall Street stocks settled higher on Friday driven by gains in technology shares.
What happened:-
The Nasdaq surged to a record closing high for the second session in a row following a surge in Apple’s stock.
All three major stock indices notched weekly gains as investors remained optimistic about the Federal Reserve cutting interest rates.
Why it matters:-
Shares of Apple jumped 4.2% on Friday and gained 13.3% last week to record their strongest weekly percentage surge since 2020.
US stocks post weekly gains
On Wednesday, President Donald Trump said that Apple would make an additional manufacturing investment of $100 billion in the US, which would bring the company’s total commitment to $600 billion in the country over the next four years.
Technology and communication services stocks were among the top performers in the S&P 500 on Friday, with the stock indices also logging record closing highs.
Shares of Gilead Sciences climbed more than 8% on Friday, after the company raised its full-year financial guidance. Expedia’s stock also rose over 4% after the company boosted its annual projections for gross bookings and sales growth.
Apple shares surge
Downbeat economic reports released recently supported prospects of an interest rate cuts ahead. Meanwhile, the US President announced the nomination of Dr Stephen Miran to the Federal Reserve Board after the exit of Governor Adriana Kugler last week. He also narrowed his list of candidates to succeed Chairman Jerome Powell, whose term is scheduled to end on May 15.
Investors now widely expect the Fed to cut rates by at least 25 basis points at its September meeting. They also expect at least two more rate cuts by yearend.
The Dow Jones index jumped 206.97 points, or 0.47%, to close at 44,175.61 on Friday, while the S&P 500 added 0.78% to settle at 6,389.45. The Nasdaq 100 climbed 0.95% to 23,611.27.
Apple shares rise
What to watch: Markets will monitor data on inflation rate, due to be released on Tuesday. The annual inflation rate in the US, which rose for the second straight month to 2.7% in June from 2.4% in May, is expected to rise further to 2.8% in July.
Trade relations between US and India are also in focus, after India retaliated to 50% tariffs by suspending new arms and aircraft purchases from the US.