The Major Markets finished another volatile week with the Nasdaq rising 1.7%, the S&P 500 gained 1.2%, while the Dow slipped 0.5%. The S&P 500 alternated between positive and negative days midweek while tensions with Iran began to re-escalate.

Reports of Iranian attacks on commercial ships navigating the strait set off the hostilities between the two countries once again. Despite the renewed conflict, WTI Crude Oil Prices rose only slightly last week.

In the midst of the geopolitical headlines, investors consistently bought pullbacks in AI-related technology. Semiconductor stocks recovered from midweek weakness, helping the technology sector lead the market.  Companies like NVIDIA, Broadcom, AMD, and Meta continued to benefit from optimism surrounding long-term AI investment.

Economic data remained generally favorable last week. The ISM Services index came in slightly below estimates while the Initial Jobless Claims also came in lower than expected.

Lastly, The June FOMC minutes released last week highlighted that while “all participants supported maintaining the current target range for the federal funds rate… A few participants commented that…there was a case for raising the target range for the federal funds rate, but those participants indicated that they supported maintaining the current target range at this meeting.”

As second-quarter earnings begin this week, investors will be watching both corporate guidance and inflation data to see whether the market can maintain its momentum near record highs, and what the future may hold for interest rates and oil prices.