FX.co ★ Dow, S&P 500 Hover at Record Levels, Nasdaq Struggles

On Friday, the Dow Jones Industrial Average increased by 0.3%, reaching new record highs, while the S&P 500 also remained near peak levels. This movement occurred as investors reallocated their portfolios, shifting funds from technology stocks to sectors perceived as more undervalued, leading to the Nasdaq's slight decline of approximately 0.5%. Despite surpassing fourth-quarter projections and anticipating a significant rise in sales of AI chips, Broadcom fell by 6%, impacting companies tied to artificial intelligence like AMD and Micron. Conversely, the financial, healthcare, and industrial sectors saw gains, with Citigroup, Eli Lilly, and GE Aerospace notably performing well. This market behavior followed the Federal Reserve's third interest rate reduction for the year, which favored cyclical and economically sensitive stocks. Lululemon's share price surged 10% following the announcement of its CEO's resignation. Additionally, cannabis stocks experienced a marked increase, driven by reports suggesting President Donald Trump may ease federal restrictions, with Tilray soaring 33% and Canopy Growth climbing 23%. Over the week, the S&P 500 is projected to increase by 0.5%, the Dow by approximately 1.6%, while the Nasdaq lags slightly with a modest gain of nearly 0.1%.