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Nasdaq ekes out 5th straight record to cap banner week for tech


US stocks finished little changed Friday, with the S&P 500 and Nasdaq logging strong weekly performances as Apple’s (AAPL) AI strategy and Elon Musk’s pay package win at Tesla (TSLA) took center stage.

The Dow Jones Industrial Average (^DJI) lost about 0.2%, while the S&P 500 (^GSPC) tipped just below the flatline. The tech-heavy Nasdaq Composite (^IXIC) gained 0.1% to eke out its fifth consecutive record close.

The S&P 500 finished up around 1.5% this week, while the Nasdaq gained more than 3%. The S&P notched record closes for four days in a row, while the Nasdaq pulled off the improbable five straight, boosted by strength in techs.

A surprise cooling in wholesale price pressures gave heart to investors betting on two interest rate cuts this year since the decline is likely to be reflected in the coming PCE inflation reading watched by the Federal Reserve.

Read more: How does the labor market affect inflation?

But the Fed this week dialed down its projected rate cuts from three to one in 2024, keeping the market guessing and leaving stocks vulnerable to shifts in mood. Strength in technology names has driven broader gains, earning the S&P 500 and the Nasdaq multiple record closes for the week. But the Dow suffered a loss for the week, as questions persist about the breadth of this year’s rally.

Meanwhile, Tesla shares were down 2% Friday after shareholders reapproved CEO Elon Musk’s pay package. Despite opposition from some large investors, 77% of votes were cast in favor, the EV maker said.

Weighing down spirits Friday more generally was a slump in European stocks (^STOXX). Investors are concerned about the fallout for markets if the far right makes political gains or even wins France’s snap election, whose first round will begin at the end of the month.

In other individual movers, Adobe (ADBE) shares jumped close to 15% after an upbeat AI sales projection from the Photoshop maker.

Live11 updates

  • Nasdaq ekes out a gain to end week full of records

    Stocks cooled off some to end the trading day on Friday, but investors still won out on the week, which featured a more optimistic inflation outlook from the Fed, the debut of Apple’s AI plans, and a major shareholder victory for Tesla’s Elon Musk.

    The Dow Jones Industrial Average (^DJI) lost about 0.2%, while the S&P 500 (^GSPC) tipped just below the flatline. The tech-heavy Nasdaq Composite (^IXIC) gained 0.1%

  • A look at the week ahead

    Investors are in for a relative lull next week, coming off major developments from Apple (AAPL), Tesla (TSLA) and the Federal Reserve.

    Earnings season, too, is winding down, although Accenture (ACN), Kroger (KR), and CarMax (KMX) are among the tickers set to report next week.

    Investors will be greeted with a shortened schedule as markets will be closed on Wednesday in honor of the Juneteenth holiday. But a smattering of economic indicators will give the market some metrics to chew on as the broader story over inflation and interest rates continues to play out, with sudden shifts in sentiment.

    Retail sales and industrial production figures will arrive on Tuesday, followed by S&P flash US PMI on Friday, offering insight into business conditions as central bankers and market participants look for signs of economic weakness.

    Wall Street will also brace for further concerns from Europe, where markets have been rattled by the prospect of political advances of the far-right party in France. President Emmanuel Macron called for snap elections that will begin later this month after his party was beaten badly by the far right in European Parliament elections.

    Yahoo Finance’s Brent Sanchez has a graphical breakdown of what to watch next week:

  • Why Apple’s OpenAI deal is bad for Google

    Now that Cupertino has unveiled its AI plans, the relationship between frenemies Apple and Google just got more complicated.

    That’s because the sometimes-gadget rivals work as partners when it comes to search and online advertising. But the tie-up, which has featured heavily in a landmark antitrust lawsuit against Google’s dominance in the search engine market, will come under new strain as AI changes how people seek out information online.

    For more than two decades, Apple has fixed Google as the default search engine in its Safari browser. Apple steers the traffic of its huge user base into Google’s search business. And in exchange for the default privilege, Google pays the iPhone maker around $18 billion a year.

    But Apple, to the delight of investors, has another deal going.

    Apple is partnering with OpenAI to bring ChatGPT to the iPhone. It’s part of a bold effort to catch up to Big Tech rivals that have gone all-in on AI. Later this year, iPhone users will get free access to…



Read More: Nasdaq ekes out 5th straight record to cap banner week for tech

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