Weekly Market Recap:
This week, U.S. equities edged higher, with the Dow gaining +0.96%, the S&P 500 rising +0.85%, the Nasdaq adding +0.80%, and the Russell 2000 outperforming with a +1.87% increase. The rally marked the sixth consecutive week of gains for major indices, led by strong performances in big tech. Notable movers included Apple (+3.3%) and NVIDIA (+2.4%). Key outperforming sectors included airlines, homebuilders, and utilities, while energy and semiconductors lagged behind.
Treasuries were relatively stable, while the dollar strengthened for a third straight week, with the DXY up +0.6%. Gold continued its upward trend, closing the week at a record high above $2,700/oz, gaining +2.0%. In contrast, crude oil fell sharply, down -9.1%, marking its worst week since March 2023.
Corporate Highlights:
ASML (-14.0%) reported weak bookings, particularly in non-AI segments, raising concerns about broader demand in the semiconductor sector.
TSM (+5.2%) saw gains after reporting strong earnings and margins, driven by AI growth.
Netflix (+5.7%) exceeded expectations with strong net subscriber additions and positive guidance.
Morgan Stanley (+9.6%) delivered solid results, particularly in investment banking and wealth management.
UnitedHealth (+4.8%) beat earnings estimates, although concerns about medical costs weighed on its outlook.
A tentative agreement has been reached between Boeing and its striking workforce, potentially ending a five-week labor strike that has severely impacted the aerospace giant. The strike, involving 33,000 members of the International Association of Machinists, has cost Boeing an estimated $1 billion a month, halting production of most of its commercial jets. Workers are set to vote on the proposal this Wednesday, with the deal including a 35% wage increase over four years and increased contributions to 401(k) plans. However, the lack of a reinstated pension plan, which was eliminated a decade ago, remains a point of contention for many employees. The strike comes at a difficult time for Boeing, which has been grappling with a series of setbacks since 2018, including the grounding of its 737 Max jets and significant financial losses. While the tentative deal is a step toward resolution, the relationship between the union and Boeing’s management remains strained, making this vote pivotal for the company’s future stability. With workers demanding better compensation and the company facing mounting losses, this deal could offer a crucial compromise to get Boeing back on track. However, it remains to be seen if union members will approve the offer and end their first strike in 16 years.
