AI stocks came roaring back this week as investors worked through another wave of corporate earnings and a surprisingly weak July jobs report. The major averages notched a second straight week of gains, with the Dow Jones Industrial Average and S&P 500 both touching record highs. The blue-chip index closed at a record Wednesday and finished the week up 3%, while the S&P 500 and the tech-heavy Nasdaq Composite gained 3.6% and 5.2%, respectively. The S&P closed at a record Friday. Friday's weaker-than-expected jobs report helped fuel the week's gains by easing concerns that the Federal Reserve will need to raise interest rates at its September meeting.
Here's a closer look at what drove the market this week:
- The AI trade finds its footing: After spending much of July under heavy pressure, semiconductor and data center stocks staged an impressive rebound this week:
- SpaceX bets big on Nvidia: Shares of SpaceX fell 13% Wednesday after the company reported better-than-expected revenue and earnings, but announced second-quarter capital expenditures of $18.4 billion, well above expectations:
- Portfolio updates: We stayed busy in the portfolio this week, continuing to reposition toward our highest-conviction opportunities:
