US stocks concluded the week with a modest rebound, with the S&P 500 index rising by 0.5%, therefore marking the strongest consecutive daily gains of the year.
The rebound in stocks helped to offset much of the losses from earlier in the week, which began with a massive selloff, the most severe trading day since 2022.
Despite the initial market turbulence and concerns about a potential economic downturn, recent corporate earnings reports have provided some insight into persistent trends, such as reduced consumer demand.
The week saw mixed performance across sectors, with consumer discretionary and materials sectors declining, while information technology and communication services outperformed the broader market.
Materials was the worst-performing sector (-1.7%) while Energy and Industrials both gained +1.2%.
The technology sector experienced mixed results, with semiconductor stocks slightly down. Notable losses were seen in shares of Nvidia Corp (NASDAQ:NVDA), Intel Corp (NASDAQ:INTC), and Advanced Micro Devices (NASDAQ:AMD) Inc, while Broadcom (NASDAQ:AVGO) Inc, Lam Research Corp (NASDAQ:LRCX), and Micron Technology Inc (NASDAQ:MU) saw gains.
The software subsector, on the other hand, enjoyed an increase, bolstered by strong performances from Microsoft Corp (NASDAQ:MSFT), Oracle Corp (NYSE:ORCL), and Palo Alto Networks (NASDAQ:PANW) Inc. Tech hardware also advanced, led by Apple Inc (NASDAQ:AAPL), NetApp Inc (NASDAQ:NTAP), and HP Inc (NYSE:HPQ).
In the communication services sector, media and entertainment companies like Meta Platforms Inc (NASDAQ:META), Alphabet (NASDAQ:GOOGL) Inc, and Netflix Inc (NASDAQ:NFLX) contributed to a 1.0% sector gain. Telecommunication services also saw an uptick, with Verizon Communications Inc (NYSE:VZ), AT&T Inc (NYSE:T), and T-Mobile US (NASDAQ:TMUS) Inc reaching new heights.
Healthcare stocks mirrored the broader market’s performance. The pharmaceuticals subsector was a standout, with Eli Lilly (NYSE:LLY) shares surging after a blowout earnings report. However, the biotechnology and life sciences segments saw declines, with Gilead Sciences Inc (NASDAQ:GILD), Amgen Inc (NASDAQ:AMGN), and AbbVie Inc (NYSE:ABBV) facing setbacks.
Financials slightly outpaced the market, with advances in banks, insurance, and financial services. JPMorgan Chase & Co (NYSE:JPM), Progressive Corp (NYSE:PGR), and American Express Co (NYSE:AXP) were among the top gainers, while Charles Schwab (NYSE:SCHW) Corp and Global Payments (NYSE:GPN) Inc saw declines.
The consumer discretionary sector aligned with the market, with the automobiles and durables & apparel subsectors making modest gains. Tesla (NASDAQ:TSLA) Inc and General Motors Co (NYSE:GM) were among the notable climbers. The real estate sector saw gains in REITs, with Simon Property Group Inc (NYSE:SPG) and Welltower (NYSE:WELL) Inc reaching record highs.
Energy stocks mostly rose following a jump in WTI crude oil prices, which were up 1% on the week. While the oil, gas, and consumable fuels subsector saw some gains, energy equipment and services faced a decline. Utilities also lagged behind the market, with electric utilities and multi-utilities experiencing mixed results.
Industrial stocks remained mostly unchanged, with transportation suffering losses and aerospace & defense gaining. The materials sector underperformed, with chemicals making slight gains, while construction materials, metals & mining, and containers & packaging faced declines.
