The Vanguard S&P 500 ETF (VOO) enjoyed a notable 0.7% surge this week, reflecting a positive mood on Wall Street. This upward trend was driven by a potent cocktail of upbeat earnings reports and favorable macroeconomic data. As a key barometer for the overall U.S. stock market, VOO mirrors the performance of the S&P 500, making it a popular choice for investors seeking broad market exposure.
One of the primary catalysts behind VOO’s climb was a strong start to the earnings season, boosting investor confidence. Netflix Inc. (NFLX) saw a remarkable 10% surge following its earnings beat, significantly impacting VOO’s price due to Netflix’s considerable weight within the S&P 500. Other companies, like Intuitive Surgical, Inc. (ISRG), which soared over 9% on earnings, further fueled the bullish sentiment.
Thursday witnessed a major push for the S&P 500, with semiconductor stocks leading the charge. Strong earnings from Taiwan Semiconductor Mfg. Co. Ltd. (TSMC) rekindled investor confidence in the tech sector. As technology is a dominant sector within the S&P 500, this rally played a crucial role in driving VOO’s upward momentum.
Meanwhile, gold miners experienced a surge as gold prices hit record highs. The VanEck Gold Miners ETF (GDX) climbed nearly 4% on Friday. While VOO’s exposure to gold miners is limited, broader gains in commodity-related sectors helped offset weaker performances in sectors like energy.
Further bolstering the market’s positive momentum was the release of encouraging macroeconomic data on Thursday. September retail sales exceeded expectations, signaling robust consumer spending, while jobless claims fell, highlighting the strength of the labor market. Although this positive data somewhat dampened hopes for Federal Reserve rate cuts in November, it reinforced the perception of economic resilience, supporting investor sentiment across equity markets. VOO, as a broad-market ETF, benefited significantly from this optimism.