The S&P 500 posted its fifth winning day on Friday. It notched a 5% weekly gain as U.S.-China trade tensions eased. The index climbed 0.70% to end at 5,958.38.
The Nasdaq Composite gained 0.52% to close at 19,211.10. The Dow Jones Industrial Average added 331.99 points, or 0.78%. It finished at 42,654.74.
For the week, the S&P 500 surged 5.3%. The Dow gained 3.4%. The Nasdaq Composite jumped 7.2%.
This was driven by strong performances in technology stocks. Shares of Apple, Microsoft, and Alphabet saw significant increases. Apple led the way with a 16% gain.
Investors seemed to overlook the University of Michigan’s consumer sentiment index. It dipped to its second-lowest level on record. Consumers are predicting a 7.3% rise in prices over the next year.
But sentiment regarding future spending remains positive. Jamie Cox, managing partner at Harris Financial Group, noted, “The U.S. consumer may say they are worried, but their spending patterns indicate otherwise. Consumption trumps all once you filter out all the noise.”
The positive momentum in the stock market is partly due to easing U.S.-China trade tensions.
Earlier this week, officials from both countries agreed on a 90-day truce in their tariff measures. This reduced fears of escalating global trade tensions. President Donald Trump announced that new tariff rates would be communicated to many countries in the coming weeks.
Virgin Galactic shares soared 42% on Friday. The spaceflight company reported a smaller first-quarter loss than expected.
Easing trade boosts market sentiment
It also announced plans for its first spaceflight with its new SpaceShip, scheduled for 2026. Novo Nordisk shares fell nearly 4%. This followed the unexpected announcement that CEO Lars Fruergaard would be stepping down.
Analysts at BMO Capital Markets expressed concerns. They said a leadership change wouldn’t address the company’s strategic issues. Novo Nordisk faces competition in the diabetes and obesity treatment markets.
Other notable market movers included:
– Applied Materials: Shares dropped 6% after reporting disappointing fiscal second-quarter revenue. – Take-Two Interactive: The stock fell 1.8% after providing weaker-than-anticipated guidance for full-year bookings. – NRG Energy: Shares gained 3% after acquiring seven natural gas facilities for $1.9 billion.
Coinbase shares rebounded more than 9% on Friday. They had fallen sharply on news of a U.S. Securities and Exchange Commission investigation. Analysts dismissed the sell-off as an overreaction.
The metric under scrutiny is no longer used by the company. Galaxy Digital began trading on the Nasdaq under the ticker GLXY. It opened at $23.50 per share.
CEO Mike Novogratz expressed enthusiasm about the company’s position in AI and crypto. He described them as the “two most exciting growth areas in markets.”
The American Association of Individual Investors survey indicated an increase in bullish sentiment. It reached its highest level since January, while bearishness declined.
Such sentiment surveys are often viewed as contrarian indicators by some investors. The University of Michigan’s consumer sentiment index fell to 50.8 in May. This was driven by heightened concerns about persistent inflation.
Year-ahead inflation expectations rose to 7.3%. The stock market’s resilience despite these indicators highlights the complexity of the current economic landscape. Investors continue to weigh inflation concerns, trade developments, and consumer behavior in their decisions.
