U.S. stock markets have extended their longest weekly rally of 2024, driven by a series of encouraging corporate earnings and signs of economic stability in major global economies. The S&P 500 Index rose by 0.4%, marking its 47th record high of the year and its sixth consecutive weekly gain. Despite being close to the anniversary of "Black Monday," most major sectors showed gains. The equal-weight version of the S&P 500 also reached an all-time high, as investors remain optimistic about a broadening market rally.
The Nasdaq 100 Index advanced by 0.7%, while the Dow Jones Industrial Average saw little change. The Russell 2000 Index remained nearly flat on the last trading day, but recorded a weekly gain of almost 2%.
Netflix (NFLX, Financial) saw its stock price surge by 11%, while Apple (AAPL) experienced a 1.2% increase, supported by strong sales figures in China for its latest iPhone model, which surpassed the 2023 version by 20%. However, American Express faced a 3.2% decline following a downward revision of its revenue guidance.
While earnings season has just begun, mixed signals are emerging, though the overall sentiment appears positive. Investors are cautiously optimistic as the U.S. presidential election and the Federal Reserve's policy meeting draw nearer.
Analysts at Bank of America have noted an increase in investor interest in assets that performed well following Donald Trump’s 2016 presidential victory, as the likelihood of a similar political outcome appears to be rising. This past week's market movements indicate preemptive buying of banks, small-cap stocks, and the U.S. dollar—assets that led gains in 2016.
During November 2016, following Trump's election win over Hillary Clinton, both the U.S. stock markets and the dollar witnessed immediate surges.
