Nasdaq Gains on Chip and Software Strength, While Dow and Small Caps Lag
The Nasdaq Composite closed the week higher, driven by gains in technology stocks, particularly in the chip and software sectors. The Dow Jones Industrial Average and Russell 2000, however, ended the week lower.
New York – The Nasdaq Composite reached new weekly highs, propelled by strong performance in technology companies, especially within the semiconductor and software industries. In contrast, the Dow Jones Industrial Average, which includes industrial companies, and the Russell 2000, representing small-cap stocks, finished the week with declines.
The Nasdaq Composite saw a daily increase of 1.18% on Friday, closing at 27,188.02 points, marking a 0.44% gain for the week. The S&P 500, however, slipped 0.31% for the week, ending at 7,719.34 points. The Dow Jones Industrial Average declined 1.42% over the week, despite a 0.33% rise on Friday, closing at 51,094.96 points.
The market's narrow rally, with technology stocks leading the advance, became apparent as other major indices failed to keep pace. Investor attention was focused on sectors benefiting from recent demand trends in software and semiconductors.
Market volatility eased during the week. The CBOE Volatility Index (VIX) fell 0.49% over the week, closing at 15.58. Crude oil prices experienced a notable drop, with WTI crude falling 2.19% for the week to $90.57 per barrel. In the bond market, the yield on the U.S. 10-year Treasury note increased by eight basis points for the week, reaching 5.26%.