The Major Markets closed mostly higher last week. The greatest gains were in the Large Cap and Mega Cap sides of the style box as technology continued to drive overall market performance last week.

The Nasdaq rose 2.1%, while the S&P 500 gained 1.2%, and the Dow added 0.3%. In contrast, the Russell 2000 fell 0.8%, highlighting how uneven market participation remains.

Semiconductors were a major catalyst, with the PHLX Semiconductor Index jumping 6.3% on renewed enthusiasm surrounding artificial intelligence and infrastructure spending.

However, rising interest rates remained a concern. Stronger economic data and hawkish Fed comments pushed the 10-year Treasury yield up 16 basis points to 5.17%, putting pressure on smaller and more rate-sensitive companies.

Oil prices were another important factor. WTI crude ultimately fell nearly 4% for the week, providing some relief from inflation concerns.

So, while the headline indexes moved higher, the underlying market remained mixed. Technology and AI continue to lead, while elevated interest rates, inflation concerns, and expectations for additional Fed tightening remain important risks heading into the final quarter of the year.