Nasdaq 100 and S&P 500: Tech Sector Strong as Apple and Super Micro Surge

Wall Street Holds Steady After a Strong Week as Investors Assess Inflation and Trade

Stocks were little changed on Friday as Wall Street took a breather following a strong week. Despite the muted session, all three major indexes remained on track for weekly gains, supported by clarity on trade policy and softer inflation data.

Traders largely brushed off disappointing retail sales data, which showed a 0.9% decline in January—significantly worse than the expected 0.2% drop. Investors instead focused on signals from the Federal Reserve’s preferred inflation measure, the personal consumption expenditures (PCE) price index, due later this month.

What’s Driving the Market?

Markets found support this week after President Donald Trump signed a memorandum outlining a targeted approach to tariffs, rather than imposing broad levies immediately. The shift alleviated fears of an escalating trade conflict, boosting investor sentiment.

Inflation data also helped ease concerns. Both the producer price index (PPI) and consumer price index (CPI) reports indicated a milder inflationary environment. This reinforced expectations that the Fed could maintain a patient stance on interest rates. The 10-year Treasury yield dropped more than 6 basis points to 4.459%, reflecting investor confidence in controlled inflation.

Tech and Semiconductor Stocks See Gains

Technology and semiconductor stocks continued their upward trend, benefiting from the improving macroeconomic outlook. Apple led the charge, climbing 6% for the week on a series of bullish developments. CEO Tim Cook hinted at a new product launch next week, potentially a 4th-generation iPhone SE featuring AI integration. Apple also announced plans to incorporate Alibaba’s AI into its Chinese iPhones, a move seen as strategic amid rising competition in the region.

Semiconductor stocks followed suit, with Super Micro Computer surging 8.7% in Friday’s session. Other notable gainers included Airbnb (+14.9%) and West Pharmaceutical Services (+9.8%), while DaVita (-13%) and GoDaddy (-11.5%) posted sharp declines.

Sector Performance and Market Movers

The energy sector outperformed, rising 0.76%, while utilities and real estate also gained. Meanwhile, consumer staples and discretionary stocks lagged, slipping 0.61% and 0.54%, respectively.

In the Dow, Goldman Sachs and Chevron led with gains of over 1.5%, while Procter & Gamble and Travelers posted the biggest losses. Microsoft and Salesforce also traded lower, reflecting some profit-taking after recent gains.

Market Outlook: What’s Next for Traders?

Investors will closely watch the upcoming PCE price index report, which could shape expectations for the Fed’s next move. Additionally, any further trade policy updates or corporate earnings surprises could drive volatility. With Treasury yields moving lower and inflation pressures appearing contained, equity markets could see continued support—though profit-taking may lead to short-term consolidation. Traders should stay alert for economic data and potential shifts in Fed guidance.

More Information in our Economic Calendar.