Large-Cap Stocks Near Records as Small Caps Lag; Deal Flow Active
Major U.S. stock indices approached record highs by the week's end, with the S&P 500 and Nasdaq Composite posting gains. Small-cap stocks, however, saw the Russell 2000 decline.
Large-cap stocks closed the week near record territory, with the S&P 500 and Nasdaq Composite indices finishing higher despite early week volatility. In contrast, small-cap stocks lagged, as the Russell 2000 index declined over the week. Deal flow remained active, with notable transactions announced across various sectors including retail, defense, and software.
The S&P 500 ended the week up 1.09% at 7807.12, just below its 52-week high. The Nasdaq Composite gained 0.58% for the week, closing at 27349.51. The Dow Jones Industrial Average also saw a weekly increase of 0.81%, settling at 51590.64.
Bucking the trend, the small-cap Russell 2000 index fell 1.01% for the week to 2804.34. Technical indicators showed divergence, with the Russell 2000's RSI14 reading at 37.5, significantly lower than the readings above 59 for the S&P 500 and Nasdaq.
Market volatility decreased, with the VIX closing at 14.84. Commodities saw mixed performance: gold rose 1.42%, silver jumped 3.53%, and WTI crude oil added 2.38% for the week. The 10-year Treasury yield increased by 3 basis points to 5.26%.
Notable corporate developments this week included Alimentation Couche-Tard Inc.'s agreement to acquire retail assets from Irving Oil in Quebec and Ontario. Additionally, RTX's Raytheon business secured a contract potentially valued up to $6.3 billion for the production and sustainment of Standard Missile-3 Block IB interceptors.