US stocks end strongest week of 2024

US shares surged on Friday, capping off their most successful week of 2024 as the market rebounded from a sharp decline earlier in August.

The S&P 500 climbed 0.2 per cent to close at 5,554.25, while the Nasdaq Composite gained 0.21 per cent to finish at 17,631.72. The Dow Jones Industrial Average added 96 points, or 0.24 per cent, to end the day at 40,659.76.

For the entire week, the S&P 500 saw a substantial increase of nearly 3.9 per cent, its best performance since November 2023. The Nasdaq experienced an even more significant rise of 5.2 per cent, and the Dow advanced by 2.9 per cent for the week.

All sectors saw growth on Friday except for Real Estate, Energy, and Industrials. Financials was the top performer for the day, closing with a 0.6 per cent increase.

Technology stocks were the driving force behind the week's rally, with Nvidia leading the pack, surging over 18 per cent. Apple and Microsoft also contributed to the positive momentum, with gains of approximately 4 per cent and 3 per cent, respectively.

Walmart delivered another impressive performance, climbing nearly 8 per cent following strong earnings results and an optimistic outlook. This positive trajectory has propelled Walmart's stock to a nearly 40 per cent increase year-to-date, solidifying its position as a standout performer in the market.

Tesla's market dominance has been steadily eroding, with a particularly steep decline in its US market share. Since its peak of 77 per cent in late 2019, Tesla's US volume share has plummeted to 48 per cent in the first half of 2024, reflecting intensifying competition within the electric vehicle market. Some analysts predict this trend will persist for an additional two years.

The recent market comeback has brought the S&P 500 within just 2 per cent of its record high reached in mid-July. Positive economic data released last week, including stronger-than-expected retail sales and a decline in jobless claims, has helped to alleviate concerns about a potential recession. Furthermore, recent inflation figures have bolstered hopes for a soft landing scenario.

Futures

The SPI futures are pointing to a 0.2 per cent fall.

Currency

One Australian dollar at 7.25am was buying 66.68 US cents.

Commodities

Gold added 1.82 per cent. Silver gained 1.51 per cent. Copper added 0.12 per cent. Oil lost 1.93 per cent.

Figures around the globe

European markets closed mixed. London’s FTSE fell 0.40 per cent, Frankfurt gained 0.8 per cent, and Paris closed 0.4 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei jumped 3.64 per cent, Hong Kong’s Hang Seng gained 1.88 per cent, while China’s Shanghai Composite closed 0.07 per cent higher.

On Friday, the Australian share market closed 1.34 per cent higher at 7971.05.

Ex-dividends
Bailador Tech Inv (ASX:BTI) is paying 3.4 cents fully franked
Euroz Hartleys Group (ASX:EZL) is paying 3 cents fully franked
Ryder Capital Ltd (ASX:RYD) is paying 5 cents fully franked
Seven Group Holdings (ASX:SVW) is paying 30 cents fully franked

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.

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