As the trading week came to a close, a notable decline was observed in the U.Sstock market on Friday, yet this dip didn't alter the generally bullish trend that had characterized the weekThe major indexes, despite the setbacks, continued to hover near their all-time highsThis situation indicates a degree of resistance to further upward movement, but thus far, there have been no clear signs of a significant market pullback.

In particular, the Philadelphia semiconductor sector exhibited a range-bound behavior recentlyAfter briefly surpassing a previous resistance level, it quickly fell back and broke below its uptrend lineThis suggests a potential for a short-term pullback while still adhering to a mid-term consolidation trend.

Looking specifically at the Nasdaq Golden Dragon Index—representing Chinese companies listed in the U.S.—there was notable volatility with a recent downtrend that subsequently reversed, forming a symmetrical triangle pattern

Advertisements

On Friday, the index experienced a substantial rally, breaching its upper resistance level, indicating signs of recovery.

Meanwhile, sectors such as S&P Real Estate and S&P Biotech have been on a downward trajectory recentlyYet, a rebound has been seen along the way, breaking past descending trend lines, signaling a halt in their declinesHowever, S&P Biotech is still at a critical point near its previous high resistance level, and further breakthroughs are necessary to open pathways for significant upward movementThe S&P Real Estate sector is currently experiencing turbulence near upward resistance, leaving future directions uncertain.

In another aspect of market dynamics, commodities such as gold and silver futures are showing signs of recovery after hitting a low pointGold has reclaimed its previous high, and if it successfully breaches further resistance, it may ascend once more

Advertisements

Silver, on the other hand, is caught in vigorous fluctuations near its descending trend line, and its future trajectory is yet to be determined.

Crude oil futures and the energy sector encountered a brief rally, which quickly faced obstacles from higher resistance levels and subsequently fellThe short-term trend line has been breached, suggesting a further decline may occur, with the next support level still quite distant.

As the week unfolds, significant earnings reports are anticipated from major players, with companies like Meta, Tesla, and Microsoft nearing critical inflection pointsDespite Friday's downturn in tech stocks, the week marked a strong upward momentum for the broader marketMany leading stocks were emitting signals of opportunity or continuing their upwards trajectory, allowing investors to remain vigilant in their search for promising investments, particularly as the earnings season approaches.

Specifically on Friday, the market showed slight declines; however, it generally enjoyed a strong week overall

Advertisements

Notably, the Dow Jones Industrial Average led the way with a rise of 2.15%. The S&P 500 Index achieved a historic high, with many technology stocks contributing positively to these gains.

The Week in Numbers:

The Dow experienced a robust increase of 2.15% over the week, while the S&P 500 rose by 1.7%. The Nasdaq Composite saw a positive shift of 1.65%, though it met resistance just below its historical peak, settling below the 20,000 markSmall-cap stocks, represented by the Russell 2000 Index, recorded a 1.4% increase on Friday but struggled around the 50-day moving average.

Over the last few days, multiple stocks in sectors like technology, finance, industrials, and energy surged significantly, mirrored by positive activity in various other sectors.

In the bond market, the yield on the 10-year U.STreasury climbed by one basis point to 4.62%, having previously touched 4.55% earlier in the week

• U.S. Stock Futures Rise
• The Cost of High Inflation in the U.S.
• The Power Play Behind Saudi Aramco's IPO
• U.S. AI Chip Trajectory
• Downgraded Earnings Forecasts: Market Impact

The upcoming Federal Reserve meeting is expected to be relatively low-key, with policymakers likely to hold steady until at least May or June, or possibly longer.

Reflecting broader market sentiment, crude oil futures fell by 3.5% last week, landing at approximately $74.66 per barrel.

In the ETF landscape, growth-oriented ETFs are gaining tractionFor instance, the iShares Expanded Tech-Software ETF appreciated by 3.5%, featuring heavyweights like Microsoft and ServiceNow among its major constituentsConversely, the VanEck Vectors Semiconductor ETF dipped 2% on Friday but managed to gain 1.3% over the week, bolstered by significant holdings from NVIDIA and Broadcom.

The ARK Innovation ETF surged 4.6% this week, while the ARK Genomics ETF skyrocketed by 12.3%, highlighting the importance of companies like Tesla that dominate Ark Invest's portfolio.

A slight uptick of 0.6% was seen in the SPDR S&P Metals and Mining ETF, while the Energy Select Sector SPDR ETF slipped by 2.8%. In contrast, the Healthcare Select Sector SPDR and Industrial Select Sector SPDR funds climbed by 3% and 2.4% respectively, with the Financial Select Sector SPDR ETF bringing in a modest gain of 1.2%.

As for large-cap stock earnings, the perspectives of tech giants like Microsoft, Meta, ServiceNow, and Apple on the monetization of artificial intelligence and capital expenditures will be pivotal moving forward

Meta's advance disclosures regarding its 2025 capital expenditure plans hold particular significance for partners like Arista Networks, which counts Meta and Microsoft among its prominent clients.

On Friday, Meta's stock moved past critical opportunity thresholds, with ServiceNow and Microsoft also nearing similar pointsIn contrast, Apple's shares are experiencing a downturn, approaching the 200-day moving average.

Examining specific stock prospects, Amazon appears to be in a favorable zone, as does GoogleCompanies like NVIDIA, Broadcom, and Salesforce are nearing points suited for buying, while Arista is seen as stretchedAlthough Tesla shares saw a decline of 4.7% this week, they are approaching an early entry point as the electric vehicle titan recently introduced revised Model Ys in the U.Sand Europe, with autonomous driving and robotics advancements driving interest.

The upcoming financial results for Tesla, Meta, Microsoft, and ServiceNow are scheduled to coincide closely with the completion of the latest Federal Reserve meeting, while Apple will take its turn later on Thursday.

In light of the current market climate, investors must consider their strategies carefully