We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
6 Stocks That Pushed the S&P 500 ETF to an All-Time High Last Week
Read MoreHide Full Article
Wall Street was upbeat last week with the S&P 500 gaining 1.2%, the Dow Jones inching up 0.7% and the Nasdaq Composite adding 2.3%. The S&P 500 and the Dow Jones hit a record high on Friday as tech stocks jumped.
Since October 2022, the S&P 500 has been in a bull market phase, according to popular definitions. This period marks a recovery from a significant dip in early 2022 due to inflation concerns and the Federal Reserve's interest rate hikes.
The index faced a severe downturn, losing up to 25% from its peak, bottoming in October 2022. A strong rally followed in late 2023, driven by cooling inflation and a dovish stance from the Fed, leading to a 24% increase in the index by the end of 2023.
Technology and AI Boost; Expectations for Low Rates in 2024
Major technology firms and optimism around artificial intelligence have been key growth drivers, significantly impacting the index's performance in recent times.
Lower anticipated interest rates have affected bond yields recently. However, investors remain cautious, adjusting their expectations regarding the Fed's future actions.
Inside Economic Resilience
The U.S. economy has shown strength in sectors like retail and consumer sentiment. Various economic indicators suggest a cooling trend, providing hope for a soft-landing scenario without triggering a recession.
Influence of Major Stocks
A group of seven major stocks, known as the Magnificent Seven, have significantly influenced the S&P 500's performance in recent times. Against this backdrop, below we highlight a few winning stocks of last week that have helped the S&P 500 to attain this height.
Advanced Micro Devices has strengthened its position in the semiconductor market on the back of its evolution as an enterprise-focus company from a pure-bred consumer-PC chip provider. AMD has emerged as a strong challenger to NVIDIA's dominance in the graphic processing unit or GPU market based on its Radeon chips. The Zacks Rank #3 (Hold) stock comes from a top-ranked Zacks sector (top 38%) and Zacks industry (top 44%).
Applied Materials is one of the world’s largest suppliers of equipment for the fabrication of semiconductor, flat panel liquid crystal displays (LCDs), and solar photovoltaic (PV) cells and modules. The company also offers deployment and support services related to the equipment supplied. The Zacks Rank #3 stock hails from a top-ranked Zacks sector (top 38%) and Zacks industry (top 22%).
Fastenal Company is a national wholesale distributor of industrial and construction supplies. The company distributes its products through more than 3,200 company-owned stores, mostly located in North America. The Zacks Rank #2 (Buy) stock comes from a top-ranked Zacks sector (top 50%).
Western Digital Corporation, headquartered in San Jose, CA, is one of the largest hard disk drive (HDD) producers in the U.S. The company designs, develops, manufactures and markets a broad range of HDDs used in desktop PCs, servers, network-attached storage devices, video game consoles, digital video recorders and a host of other consumer electronic devices. The Zacks Rank #2 stock belongs to a top-ranked Zacks sector (top 38%) and Zacks industry (top 44%).
O'Reilly Automotive, Inc. is a leading specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States. The Zacks Rank #2 stock belongs to a top-ranked Zacks sector (top 50%) and Zacks industry (top 27%).
AutoZone, Inc. is one of the leading specialty retailers and distributors of automotive replacement parts and accessories in the United States. The Zacks Rank #3 stock belongs to a top-ranked Zacks sector (top 50%) and Zacks industry (top 27%).
Any Caveat?
Despite market rallies, concerns about the high valuations of these major stocks persist. Experts like Brent Schutte highlight the challenges posed by these high valuations for the broader market, per Reuters, as quoted on Yahoo Finance.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
6 Stocks That Pushed the S&P 500 ETF to an All-Time High Last Week
Wall Street was upbeat last week with the S&P 500 gaining 1.2%, the Dow Jones inching up 0.7% and the Nasdaq Composite adding 2.3%. The S&P 500 and the Dow Jones hit a record high on Friday as tech stocks jumped.
Since October 2022, the S&P 500 has been in a bull market phase, according to popular definitions. This period marks a recovery from a significant dip in early 2022 due to inflation concerns and the Federal Reserve's interest rate hikes.
The index faced a severe downturn, losing up to 25% from its peak, bottoming in October 2022. A strong rally followed in late 2023, driven by cooling inflation and a dovish stance from the Fed, leading to a 24% increase in the index by the end of 2023.
Technology and AI Boost; Expectations for Low Rates in 2024
Major technology firms and optimism around artificial intelligence have been key growth drivers, significantly impacting the index's performance in recent times.
Lower anticipated interest rates have affected bond yields recently. However, investors remain cautious, adjusting their expectations regarding the Fed's future actions.
Inside Economic Resilience
The U.S. economy has shown strength in sectors like retail and consumer sentiment. Various economic indicators suggest a cooling trend, providing hope for a soft-landing scenario without triggering a recession.
Influence of Major Stocks
A group of seven major stocks, known as the Magnificent Seven, have significantly influenced the S&P 500's performance in recent times. Against this backdrop, below we highlight a few winning stocks of last week that have helped the S&P 500 to attain this height.
Advanced Micro Devices (AMD - Free Report) – Up 17.7%
Advanced Micro Devices has strengthened its position in the semiconductor market on the back of its evolution as an enterprise-focus company from a pure-bred consumer-PC chip provider. AMD has emerged as a strong challenger to NVIDIA's dominance in the graphic processing unit or GPU market based on its Radeon chips. The Zacks Rank #3 (Hold) stock comes from a top-ranked Zacks sector (top 38%) and Zacks industry (top 44%).
Applied Materials (AMAT - Free Report) – Up 10.5%
Applied Materials is one of the world’s largest suppliers of equipment for the fabrication of semiconductor, flat panel liquid crystal displays (LCDs), and solar photovoltaic (PV) cells and modules. The company also offers deployment and support services related to the equipment supplied. The Zacks Rank #3 stock hails from a top-ranked Zacks sector (top 38%) and Zacks industry (top 22%).
Fastenal (FAST - Free Report) – Up 9.1%
Fastenal Company is a national wholesale distributor of industrial and construction supplies. The company distributes its products through more than 3,200 company-owned stores, mostly located in North America. The Zacks Rank #2 (Buy) stock comes from a top-ranked Zacks sector (top 50%).
Western Digital (WDC - Free Report) – Up 8.5%
Western Digital Corporation, headquartered in San Jose, CA, is one of the largest hard disk drive (HDD) producers in the U.S. The company designs, develops, manufactures and markets a broad range of HDDs used in desktop PCs, servers, network-attached storage devices, video game consoles, digital video recorders and a host of other consumer electronic devices. The Zacks Rank #2 stock belongs to a top-ranked Zacks sector (top 38%) and Zacks industry (top 44%).
O'Reilly Automotive (ORLY - Free Report) – Up 8.4%
O'Reilly Automotive, Inc. is a leading specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States. The Zacks Rank #2 stock belongs to a top-ranked Zacks sector (top 50%) and Zacks industry (top 27%).
AutoZone (AZO - Free Report) – Up 8.1%
AutoZone, Inc. is one of the leading specialty retailers and distributors of automotive replacement parts and accessories in the United States. The Zacks Rank #3 stock belongs to a top-ranked Zacks sector (top 50%) and Zacks industry (top 27%).
Any Caveat?
Despite market rallies, concerns about the high valuations of these major stocks persist. Experts like Brent Schutte highlight the challenges posed by these high valuations for the broader market, per Reuters, as quoted on Yahoo Finance.