EZBites for the week ending June 7, 2024
DOW:+0.3% (YTD:+2.9%)
NASDAQ:+2.4% (YTD:+14.1%)
S&P:+1.3% (YTD:+12.1%) The US major indices logged gains this week largely thanks to mega-cap stocks outperforming their smaller peers. Still, the broader market showed nice resilience to selling efforts.
The Vanguard Mega Cap Growth ETF (MGK) jumped 3.3% this week and the PHLX Semiconductor Index (SOX) settled 3.2% higher. NVIDIA (NVDA) was a standout from the spaces, topping a $3 trillion market value on a closing basis for the first time ever this week.
The strength in semiconductor stocks and mega-caps boosted the S&P 500 information technology (+3.8%), consumer discretionary (+1.5%), and communication services (+1.7%) sectors to solid gains this week. Meanwhile, the utilities (-3.9%) and energy (-3.5%) sectors fell the most.
Concerns about economic growth kept the broader market in check - the ISM Manufacturing Index for May contracted more than expected, job openings decreased in April compared to March, and the May Employment Situation Report showed higher than expected earnings growth.
Treasury yields settled lower in response to the data and in response to the first rate cut by the ECB since September 2019. The 10-yr note yield settled eight basis points lower this week to 4.43% and the 2-yr note yield declined two basis points to 4.87%