Stocks closed mostly lower on Friday, but the tech-heavy Nasdaq notched another record high close.

It was a clean sweep for the week with the Nasdaq making a new all-time high close every day last week. The S&P 500 had a stellar week as well, but had to settle for making a new all-time high close for just 4 out of 5 days last week.

The S&P and Nasdaq were also both up for the week, making it 2 up weeks in a row.

But the Dow, the small-cap Russell 2000, and the mid-cap S&P 400 were all lower for the week. In fact, it was the second down week in a row for the small-caps and mid-caps.

It's no secret that big-tech has been leading the way as it rides the AI boom. But it comes into clearer focus when you look at the Nasdaq's 17.8% YTD gain vs. the small-cap Russell's -1.03% loss.

Small-caps will have their day again. Or at least play a mean game of catch up. And I wouldn't be surprised if it's very, very soon. But it's been a long wait so far.

For the record, the other indexes are in the green, just not to the extent of the S&P 500 and Nasdaq. Here's the breakdown: the Dow is up 2.39%, the S&P 500 is up 13.9%, the Nasdaq is up 17.8%, the Russell 2000 is down -1.03%, and the S&P 400 is up 4.09%.

Last week's better than expected CPI and PPI reports calmed inflation fears, and showed it's finally starting to head back down after a brief stall.

Although, that didn't appear to push up the Fed's timeline for when they expect to cut rates. Last week's FOMC Announcement showed they are still waiting for more confirmation that inflation indeed is on a path down to 2%. But they felt confident enough to say they expect to cut rates once by year's end. (Of course, that could change to 2 or even 0. Let's not forget they were expecting 3 rate cuts by year's end as little as a few months ago.)

Either way, they are still penciling in 1 rate cut by the end of the year. And if inflation keeps falling the way it did in last week's reports, we might see more cuts than one, and those cuts starting sooner rather than later.

In other news, Import and Export Prices showed Import Prices down -0.4% m/m vs. last month's 0.9% pace and views for 0.0%. On a y/y basis it was up 1.1%, in line with last month and under estimates for 1.5%. Export Prices fell -0.6% m/m vs. last month's 0.6% and the consensus for 0.0%. On a y/y basis it was up 0.6% vs. last month's -0.09%.

And Consumer Sentiment slipped to 65.6 vs. last month's 69.1 and expectations for 73.0. The year-ahead inflation expectations (which is also a part of that report) came in at 3.3% vs. last month's 3.3% as well, but just above estimates for 3.2%.

Note, we have a shortened trading week this week. Wednesday, June 19, is Juneteenth National Independence Day, and the markets will be closed.

Stocks will try and build on last week's gains this week. And for the three indexes that weren't up last week, they'll be trying to turn things around and get into the green this week.

Should be a busy week this week.

See you tomorrow,