Weekly Market Recap and Key Financial Updates

Weekly Market Overview

The financial markets concluded positively in a holiday-shortened week, with major indices recording gains. The Dow Jones Industrial Average saw an increase of nearly 1.5%, while the Russell 2000 index, which represents small-cap stocks, rose by approximately 0.8%. The S&P 500 and the NASDAQ 100 also ended the week on a high note.

Sector Performance

Out of the eleven sectors in the S&P 500, eight finished the week in green. The Consumer Discretionary sector led these gains with a rally of 2.5%, buoyed by increased consumer spending and optimism. Following closely was the Energy sector, which benefited from a surge in crude oil prices. On the flip side, Utilities and Technology sectors lagged behind, experiencing declines.

Company Highlights

Nvidia's Milestone Achievement

Nvidia reached a new all-time high this week, achieving a market capitalization surpassing $3.3 trillion and overtaking Microsoft as the world’s most valuable company. This milestone is largely attributed to Nvidia's dominance in artificial intelligence technology, where it holds over an 80% market share in AI chips. Despite this achievement, Nvidia’s stock pulled back slightly by 4% by week's end.

GameStop’s Strategic Shifts

GameStop’s stock faced a sharp decline after its annual shareholder meeting revealed plans for increased profitability through cost-cutting measures and store closures. CEO Ryan Cohen's announcement led to nearly a 17% drop in its shares over the week.

Trump Media & Technology Group’s Regulatory Update

Trump Media & Technology Group experienced a significant downturn after the SEC approved its registration statement for public resale of shares and warrants. This development saw its stock decrease by 25% over the week and nearly 44% over the month.

Looking Ahead to Next Week’s Economic Indicators

Next week promises several key economic releases that could impact market sentiment:

• Consumer Confidence and Richmond Fed Manufacturing Index will be released on Tuesday.
• Midweek brings updates on Jobless Claims, Durable Goods Orders, and preliminary figures for Q1 GDP.
• The week concludes with reports on Personal Consumption Expenditures (PCE) and Consumer Sentiment Index on Friday.

Earnings Reports to Watch

Several major companies are slated to release their earnings reports next week:

• Carnival Corporation and FedEx Corporation will report on Tuesday.
• Midweek earnings include updates from General Mills, Levi Strauss, and Micron Technology Inc.
• Closing out the earnings reports are Walgreens Boots Alliance Inc. and Nike Inc., scheduled for Thursday.

Stay tuned to Schwab Network for continuous updates on these developments.

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