The S&P 500 experienced a slight increase of 0.13% over the past week, marking its seventh consecutive week of gains, the longest streak since December 2023. Despite record highs earlier in the week, a significant decline of 1.24% on Friday dampened the overall performance.
The market's reaction followed a summit between President Trump and Chinese President Xi Jinping, which yielded limited concrete outcomes, particularly regarding trade agreements. Boeing's stock fell by 7% as the anticipated orders from China did not meet Wall Street's expectations, with only a commitment for approximately 200 planes instead of the expected 500.
In contrast, Nvidia's shares rose by 4.7% for the week, despite the summit not resulting in a semiconductor deal. The discussions included AI technology, with Trump suggesting potential future developments, although China aims to develop its own capabilities.
The market also faced pressure from rising oil prices and bond yields, complicating the outlook for the Federal Reserve under new Chairman Kevin Warsh, especially following inflation reports that exceeded expectations. The consumer price index and producer price index both indicated rising prices, raising concerns about the feasibility of lowering interest rates without reigniting inflation.
On a positive note, the AI sector remained robust, highlighted by the successful IPO of Cerebras, which raised $5.5 billion and saw a 68% increase on its first day, despite a subsequent drop. Cisco's strong earnings report, driven by AI orders, further supported optimism in the tech sector, benefiting companies like Broadcom.
Overall, while the S&P 500 has shown resilience, the mixed signals from economic indicators and geopolitical developments suggest a cautious outlook for future gains