The S&P 500 index rose 1.6% last week, reaching new highs, led by the technology sector.
The market benchmark closed Friday’s session slightly below its record closing level of 5,433.74 reached on Thursday. The S&P 500 also hit a new intraday high on Wednesday. It is now up 2.9% for the month-to-date and up 14% this year.
Strength in the tech sector drove the week’s climb even as the Federal Open Market Committee reduced its expected number of 2024 rate cuts to just one. The policy-setting committee kept its benchmark lending late unchanged on Wednesday and updated its Summary of Economic Projections to indicate only one rate cut is now expected for this year, down from three forecast in March.
The technology sector jumped 6.4%, followed by a 1.2% rise in real estate and a 0.9% climb in communication services. Consumer discretionary also edged higher.
On the downside, energy fell 2.3%, followed by a 2% drop in financials, a 1.2% decline in consumer staples and a 1% loss in industrials. Other decliners included materials, health care and utilities.
Economic data this week will include May retail sales and industrial production on Tuesday, May housing starts and building permits on Thursday and May existing home sales on Friday, among other reports.
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