The Major Markets wrapped up a volatile week, defined by sharp sector rotation and earnings-driven swings. The Dow surged 2.5% to a new all-time high, powered by strength in value, cyclical, and defensive stocks. Meanwhile, growth struggled, with the S&P 500 slipping 0.1% and the Nasdaq falling 1.8% under pressure from mega-cap tech.

Earnings were the main catalyst. As of Friday, Factset reports that 59% of the S&P 500 companies have released their earnings, with 76% of those companies beating their earnings per share estimates.

But last week, concerns around massive capital spending plans from Alphabet and Amazon weighed heavily on growth stocks, especially software and communication services. And while Alphabet beat their estimates, Amazon slightly missed theirs. A lot of focus was placed on the cloud computing space as these two companies have battled for dominance in this area, especially as there has been an increasing demand for AI hosting.  Technology lagged for most of the week, though a strong rebound on Friday helped stabilize sentiment.

In contrast, value-oriented sectors led. Consumer staples, industrials, energy, and materials all posted solid gains as investors favored earnings visibility and balance-sheet strength. Small- and mid-cap stocks also outperformed, reinforcing the rotation away from mega-cap growth.

Friday’s rally showed how quickly momentum can return when tech stabilizes, but the week ultimately highlighted a clear bifurcation between growth and value. As earnings continue, leadership remains fluid and highly sensitive to guidance and capital spending confidence.