The S&P 500 and Nasdaq 100 indices closed out the week on a high note, marking their seventh straight day of gains and their best weekly performance since late October 2023. The surge in stock prices reflects a growing optimism among investors fueled by a string of positive economic indicators released throughout the week.
The SPDR S&P 500 ETF Trust (SPY) and the Invesco QQQ Trust, Series 1 (QQQ), which track the S&P 500 and Nasdaq 100, respectively, closed with modest daily gains of 0.2% and 0.1%. However, for the week, the S&P 500 and Nasdaq 100 soared 4% and 5.5%, marking their best weekly performances in 10 months. The Dow Jones Industrial Average, as tracked by the SPDR Dow Jones Industrial Average ETF (DIA), also closed 0.2% higher, marking its fourth straight session of gains and the best week since December 2023.
On Friday, traders welcomed a better-than-expected consumer sentiment reading from the University of Michigan, which indicated a growing optimism among consumers. This followed a string of positive economic data released earlier in the week. Initial jobless claims for the week ending Aug. 10 came in lower than expected, suggesting a robust labor market. Retail sales for July also exceeded expectations, rising 1% month-over-month – the strongest increase since January 2023. Softer-than-anticipated inflation data for both consumers and producers released earlier this week further bolstered market sentiment, solidifying expectations for an interest rate cut from the Federal Reserve next month.
The upbeat economic data has tempered expectations for a larger rate reduction, with market participants now leaning toward a more modest 25-basis-point cut. Market-implied probabilities for a larger 50-basis-point reduction have dropped to 23%, according to CME Group’s FedWatch tool, indicating that the market is not anticipating an overly loose monetary policy.
“The latest data support our view that betting against consumers when jobs are expanding is a bad bet. Even bad weather didn’t stop them from going to the malls last month,” said Ed Yardeni, president at Yardeni Research. He further emphasized that the latest earnings season provides no indication of an impending recession. With over 90% of S&P 500 companies reporting their second-quarter results, collective operating earnings per share for the index surged 10.9% year-over-year to a record high of $60.19.
Here are the top 5 movers on the S&P 500 and Nasdaq 100 on Friday:
S&P 500’s Top 5 Movers on Friday
| Company | 1-day return (%) |
|—|—|
| Ulta Beauty, Inc. (ULTA) | 3.21 |
| DexCom, Inc. (DXCM) | 3.16 |
| Tapestry, Inc. (TPR) | 3.06 |
| West Pharmaceutical Services, Inc. (WST) | 2.67 |
| Bath & Body Works, Inc. (BBWI) | 2.47 |
Nasdaq 100’s Top 5 Movers on Friday
| Security Name | 1-day return (%) |
|—|—|
| Atlassian Corporation (TEAM) | 5.05 |
| DexCom, Inc. (DXCM) | 3.16 |
| PDD Holdings Inc. (PDD) | 2.90 |
| Take-Two Interactive Software, Inc. (TTWO) | 2.43 |
| Warner Bros. Discovery, Inc. (WBD) | 2.36 |
