Wall Street Posts Second-Best Weekly Gain of the Year with 4.59% Surge.

Wall Street's S&P 500 index surged 4.59% for the week, marking its second-best weekly gain this year. The index rose in four out of five sessions, with the SPDR S&P 500 ETF Trust advancing 4.60% for the week. The gains follow a volatile trading week, with market participants optimistic about the prospects of the US economy.

The Nasdaq Composite Index and the S&P 500 both closed the week with significant gains, reflecting investor optimism about the U.S. economy. The Nasdaq climbed by more than 1% [1], while the S&P 500 surged 4.59% for the week, marking its second-best weekly gain this year [3]. The SPDR S&P 500 ETF Trust advanced 4.60% for the week [3].

The strong performance of the tech sector, particularly Alphabet Inc., played a significant role in the market's positive sentiment. Alphabet's earnings report exceeded expectations, with revenue growing by 12% year-over-year, driven by robust performance in its search and advertising divisions [1]. The company's AI tool, AI Overviews, has attracted 1.5 billion monthly users, demonstrating its ability to integrate AI effectively into its services. This growth has reinforced investor confidence in Alphabet's ability to navigate the evolving tech landscape.

In addition to Alphabet's strong earnings, optimism about potential trade agreements also contributed to the market's positive sentiment. President Donald Trump indicated that the U.S. is nearing a trade deal with Japan, suggesting that agreements could be finalized within the next three to four weeks [1]. This development has eased some concerns about global trade tensions, which have been a significant factor in market volatility.

The broader market rally was evident across major indices. The S&P 500 rose by 0.74% to 5,525.21, while the Dow Jones increased by 0.05% to 40,113.50. The Nasdaq's gain was more pronounced, closing at 17,282.94, up by 1.26% [1]. The tech-heavy Nasdaq's strong weekly performance reflects investors' renewed confidence in the tech sector and the potential for improved trade relations.

The market's optimism was tempered by concerns about the U.S. trade war with China. The CEO of Flexport, Ryan Petersen, warned that the current U.S. tariffs on China could cost the U.S. economy $2 trillion and trigger millions of layoffs [2]. Petersen noted that Chinese imports to the U.S. are about $400 billion, and those goods sell at retail for nearly $2 trillion. He warned that a sudden surge in demand could lead to a "bullwhip scenario," driving ocean freight prices sharply higher.

Despite these concerns, market participants remained generally optimistic about the prospects of the U.S. economy. The Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, was up 0.2% in after-hours trading, while the SPDR S&P 500 ETF Trust (SPY) also rose 0.2% [2].

As investors look ahead, they will continue to monitor both corporate performance and geopolitical developments for signs of sustained market growth.

References:
[1] https://paginasiete.bo/nasdaq-climbs-more-than-1-as-stocks-finish-strong-week/
[2] https://stocktwits.com/news-articles/markets/equity/flexport-ceo-warns-trump-s-china-tariffs-could-cost-us-economy-2-trillion-trigger-millions-of-layoffs/chQnUGhRbgU
[3] https://seekingalpha.com/news/4434092-stock-market-news-today-nasdaq-sp500-dow-jones