Market Updates and Analysis: Nasdaq Hits New High, Defensive Sectors Perform After Rate Cut, and More

The Nasdaq Composite reached a new record high on Friday afternoon, ticking higher to close at 17,688.88. This tech-heavy index added 0.12% to set the new record. In contrast, the S&P 500 slipped 0.04% to 5,431.60, and the Dow Jones Industrial Average lost 0.15%, settling at 38,589.16.

The performance of the Invesco Equal Weight S&P ETF (RSP) is causing concern among investors, with Wolfe Research noting that it is “flirting with important support.” The equal weight ETF hit a peak in late March but has since been down around 4%, moving 1% lower during Friday’s session.

Broadcom had its best week on record following its earnings report, with shares surging more than 23%. The chipmaker also announced a 10-for-1 stock split, contributing to its strong performance.

Information technology stocks led the S&P 500 to a winning week, with the index tracking for a more than 1% gain. However, only three of the 11 sectors are on pace to finish clearly in the green, with the financial and energy sectors performing the worst.

Mergers and acquisitions volumes are up significantly in the Americas this year, with a total value of $846.7 billion so far, up 43% compared to the same period last year.

Overall, the stock market opened lower on Friday, with the broader market index falling 0.4% and the tech-heavy Nasdaq losing 0.3%. Import and export prices both posted declines in May, indicating a pullback in inflation. Adobe and Hasbro were among the stocks making the biggest premarket moves, with Adobe soaring 14.2% after posting better-than-expected earnings and revenue.