Stock Market This Week (US): Nasdaq Extends Winning Run to Fourth Week

Stock Market This Week (US)

It was one of the best weeks for US equity investors as all the major indices ended higher. The tech-heavy index jumped 4.32% and closed out its fourth week of gains, while S&P and Dow added 2.47% and 1.81%, respectively.

US stock market this week: Stocks movement this week

The US equity market increased on Monday to start the week that will be busy with earnings. Nasdaq was a clear winner with an over 2% rally. Shares of Apple and Tesla gained as hopes of reopening in China strengthened. Investors weighed the possibility that the Fed is preparing to slow the pace of its inflation-fighting rate hikes after months of aggressive tightening.

On Tuesday, the US market continued its winning momentum to close higher. The earning season continued with mixed results. The unofficial start to big-tech results kicks off with Microsoft reporting after the bell. The market continues to increase despite an underwhelming start to earnings season and more signs that the US economy is slowing.

The US major benchmark indices turned negative for the first time in the week on Wednesday as investors evaluated the latest batch of corporate earnings and assessed how the largest companies will do amid rising rates and recession fears. Technology stocks languished for most of the trading session after Microsoft’s lackluster guidance fueled growth concerns. 

On Thursday, the US equity market ended higher, with Nasdaq closing 1.76% up. The GDP data was released and was higher than the estimates. Tesla jumped nearly 11% after posting record revenue and solid earnings. Investors' focus now has shifted to Fed's meeting and the interest rate hike.

The benchmark indices continued to rally on Friday. The gain was fueled by better-than-expected economic growth and a pop in Tesla shares. Even the smallcap index was up for the day.

Key highlights of the week:

Quarterly results: 3M share price dropped this week after the company announced disappointing guidance. Tesla reported its best revenue and sold earnings - the share price jumped this week. IBM reported revenue higher than estimates. American Express posted good numbers with strong guidance but missed the estimate in the topline and bottomline.

GDP Data for the fourth quarter: Gross domestic product rose at a 2.9% annualized pace in the fourth quarter, slightly better than expected. Dow had estimated growth at 2.8%. Consumer spending weakened from the previous period but remained positive. The growth rate was slightly slower than the 3.2% pace in the third quarter. Consumer spending, which accounts for about 68% of GDP, increased 2.1% for the period, down slightly from 2.3% in the previous period but still positive.

Tesla’s share has had its best week in a decade: Tesla shares surged 33% this week, marking their best weekly performance since May 2013. Elon Musk said earlier this week the company was on target to potentially produce 2 million vehicles in 2023. The rebound followed a six-month period in which Tesla shares declined more than 40%. The rally was aided by a strong increase in fourth-quarter numbers. Tesla beat on both the top and the bottom lines, recording total revenue of $24.32 billion.

Other updates: A report on jobless claims highlighted a strong, tight labor market. Weekly jobless claims fell by 6,000, down to 186,000 for the lowest reading since April 2022 and well below the 205,000 Dow Jones estimate. The latest Investors Intelligence weekly survey of financial newsletter writers showed bullishness slipping back to 45.1% from 46.5% last week, which had topped the December high reading of 43.3% and the mid-August 2022 high of 45.0%.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.