The Nasdaq Hit Highs as Apple Had Its Best Week Ever

U.S. stocks just wrapped up their strongest week since June, with a powerful rally in big tech propelling the Nasdaq 100 to fresh all-time highs. Optimism wasn’t fueled by earnings alone hopes are also rising that Washington and Moscow could strike a deal to end the war in Ukraine.

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Meanwhile, gold prices swung sharply as traders reacted to shifting headlines.

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The S&P 500 inched toward the 6,400 mark, closing just shy of record territory. Apple Inc. had its best week since 2020 after reports the company plans to invest another $100 billion in U.S. manufacturing a move analysts say could help sidestep future tariffs.

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Shares of Fannie Mae and Freddie Mac also surged on speculation the U.S. government could start selling stakes in the mortgage giants as early as this year.

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In the bond market, 10-year Treasury yields ticked up three basis points to 4.28%, while the U.S. dollar barely moved. Oil prices were choppy throughout the week. The Trump administration hinted at clarifying trade policy to ensure imported gold bars won’t be hit with tariffs.

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President Donald Trump added to the bullish mood by announcing plans to meet “very shortly” with Russian President Vladimir Putin to push for a ceasefire in Ukraine.

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According to Bret Kenwell, senior strategist at eToro, the rally has been backed by both technical strength and supportive fundamentals.
“While risks could emerge later in 2025, corporate earnings have been better than expected, and the Federal Reserve is inching toward rate cuts,” Kenwell said. “As long as economic conditions hold, there are catalysts to keep this market moving higher.”

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Trump credited tariffs for having a “huge positive impact” on equities, claiming that markets are setting new records almost daily and that “hundreds of billions” are flowing into U.S. coffers.

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Florian Ielpo of Lombard Odier Investment Managers said the market clearly adopted a “buy-the-dip” approach this week. “Last week, sentiment was soft, with muted reactions to earnings beats. This week was a different story,” he noted. His firm’s risk appetite indicator has improved but “still has room to grow.”

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Craig Johnson at Piper Sandler added that while August and September often bring seasonal pullbacks, skeptical investors are now feeling forced to “buy the dips… not sell the rips.”

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Despite the rally, fund flow data showed $28 billion was pulled from U.S. equities in the week ending Aug. 6, according to Bank of America, citing EPFR Global data. At the same time, money market funds saw $107 billion in inflows.

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Daniel Skelly of Morgan Stanley Wealth Management warned that with valuations stretched, careful stock selection and diversification are critical. On the macro side, BofA’s Michael Hartnett said many clients expect a “Goldilocks” scenario an economy running at a steady pace, with cooling inflation allowing the Fed to cut rates and boost equities.

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Kenwell believes a short-term consolidation wouldn’t be a bad thing. “After a big move higher, a pullback or sideways trading could be healthy. Most investors would likely view it as another buying opportunity,” he said.

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Ulrike Hoffmann-Burchardi of UBS Global Wealth Management expects stocks to stay supported by solid fundamentals but warns that headlines on tariffs, the economy, and geopolitics could quickly shift sentiment.

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Mark Hackett at Nationwide predicts the next meaningful market move will depend on fundamentals either stronger economic resilience lifting earnings forecasts or cracks in the labor market sparking recession fears. “Given softer technical readings and seasonal headwinds, some consolidation wouldn’t be surprising,” he said.

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St. Louis Fed President Alberto Musalem backed last week’s decision to keep interest rates unchanged, but stressed the central bank still hasn’t fully met its inflation goals. Traders are now looking ahead to next week’s CPI report for clues on policy direction.

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TD Securities strategists expect the July data to show core inflation gaining momentum, which could influence the Fed’s rate path into the fall.

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