The S&P 500 pushed to a record high Friday, extending its longest weekly winning streak since late 2024 as robust earnings from technology giants overshadowed concerns about the pace of investment in artificial intelligence.
"A lot of the economic data calmed investors' fears," said Paul Nolte, senior wealth adviser & market strategist at Murphy & Sylvest. "Beyond that, you've got some pretty good earnings from a lot of different companies, and we're seeing that broaden out today."
The technology sector was in the spotlight as Alphabet jumped 10.0% after reporting a record quarter for its cloud unit, while Amazon rose 0.8%. However, a Wall Street Journal report raising questions about OpenAI’s internal revenue and user growth targets sent other AI-linked names sharply lower. Nvidia, AMD, and Arm Holdings all dropped, pulling the semiconductor index down for a second straight day. Communication services and industrials were among the top-gaining sectors, while technology ended in the red.
The market now looks to upcoming earnings from Amazon, Meta, Microsoft, and Alphabet for direction. The AI infrastructure buildout has been the key trade for months, and any sign of cracking demand could amplify Tuesday's selloff. With Spot Brent crude oil above $110 and a potentially bearish closing price reversal top forming on June E-mini S&P 500 Index futures, the market remains on edge.
This article is for informational purposes only and does not constitute investment advice.
