Last week, U.S. equities extended their rally before momentum faded. The S&P 500 and Nasdaq hit record highs early in the week, fueled by excitement around artificial intelligence and hopes for Federal Reserve rate cuts. Mega-cap tech stocks led the charge, with investors piling into growth and innovation themes. However, sentiment cooled toward the end of the week as Treasury yields rose and stronger-than-expected economic data raised doubts about how soon the Fed might ease policy. Energy and financials lagged, while tech and communication services stayed resilient.
Overall, markets reflected a push-and-pull between optimism over innovation and earnings strength and caution about tighter financial conditions. The week ended with stocks modestly lower but with a more cautious tone setting in, suggesting investors are reassessing the balance between growth potential and macro headwinds. The market still only gave back .30% from a record close..