In a week filled with market anticipation due to the release of May inflation data and the Federal Reserve Open Market Committee meeting on the same day, Wall Street demonstrated remarkable resilience, navigating these pivotal tests with confidence.
The S&P 500 and Nasdaq 100 indices both achieved record highs on four consecutive days, driven by the advance of tech titans such as Apple Inc. (NASDAQ:AAPL), Nvidia Corp. (NASDAQ:NVDA) and Microsoft Corp. (NYSE:MSFT).
Despite Federal Reserve Chairman Jerome Powell's emphasis on the need for higher confidence on inflation and the Fed's updated median projections indicating only one interest rate cut in 2024, investors are increasingly hopeful that rate cuts will begin in September.
These expectations have been reinforced by cooler-than-expected inflation reports on both consumer and producer price data, as well as by unexpectedly high weekly unemployment claims and weak consumer sentiment.
Broadcom stood out as the week's top performer in the S&P 500, with its stock soaring over 20%, driven by stronger-than-expected earnings and rising confidence in the demand for artificial intelligence chips. This surge marks one of Broadcom's best weekly performances since going public.
Apple WWDC 2024
Apple's artificial intelligence innovations unveiled at the Worldwide Developers Conference 2024, including generative AI features and system updates, led Goldman Sachs to raise iPhone sales projections for 2025 and 2026 by 9.5 million and 10.1 million units, respectively.
Economist Declares Inflation Victory
Reacting to the May inflation report, economist Paul Krugman said price pressures are effectively defeated. He noted that core inflation, excluding shelter costs, provides a more accurate picture of the economic situation.
GameStop Stock Surges
GameStop Corp. (NYSE:GME) shares rose Thursday after Keith Gill, known as "Roaring Kitty," updated his Reddit followers on his increased holdings of 9.001 million shares. On Friday, GameStop's annual shareholder meeting was disrupted due to overwhelming interest from retail investors.
Texas Welcomes Tesla
Tesla has officially moved its incorporation from Delaware to Texas following a shareholder vote, aligning its legal domicile with its headquarters in Austin and reflecting CEO Elon Musk's ongoing shift of operations to the Lone Star State.
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Photo created using artificial intelligence via MidJourney.