Market Ends Week Higher, Snapping Three-Day Skid

The stock market finished the week on firmer ground, snapping a three-day losing streak as broad-based buying helped lift the major averages. The Dow Jones Industrial Average gained 0.7%, trimming its weekly decline to just 0.2%. The S&P 500 added 0.6% but still ended the week down 0.3%, while the Nasdaq Composite advanced 0.4%, cutting its weekly loss to 0.7%.

The higher close did not come easily, as early weakness in mega-cap names weighed on sentiment. However, the broader market held its footing, and afternoon momentum allowed several of the day’s laggards—including NVIDIA and Microsoft—to claw back into positive territory.

Economic data provided another focal point, with August’s Personal Income and Spending report landing solidly, while rate cut expectations inched higher. Traders now see greater odds of two additional cuts by year-end.

Ten of the eleven S&P 500 sectors closed in the green, with seven posting gains of more than 0.8%. Consumer discretionary stocks led the way with a 1.5% advance, powered by Tesla’s 4% rally. Utilities, materials, and real estate also performed well, while energy finished higher despite some late profit-taking, capping a strong week alongside a 5.3% rise in crude oil prices.

On the flip side, communication services barely managed a positive finish, held back by weakness in Meta Platforms, while the consumer staples sector slipped 0.1%, dragged lower by Costco, which dropped nearly 3% despite beating quarterly earnings estimates.

Technology’s advance was modest at 0.2%, but more than half of the sector’s components finished higher. Intel extended its strong run to levels not seen since mid-2024, while strength in hardware and semiconductors helped offset weakness in larger names.

The day’s standout performers came from the entertainment space. Electronic Arts and Take-Two Interactive both soared to record highs after reports surfaced that EA may be taken private in a $50 billion deal, fueling optimism across the video game industry.

Despite mega-cap hesitations and valuation concerns, the market ended the week with a note of resilience, a sign that dip-buying appetite remains intact even in a cautious policy environment.

Our FTInvest 11 model portfolio ended Friday’s session with a slight 0.21% advance, closing at 856.44. The late-week uptick helped ease some of the recent pressure, but it was not enough to prevent a weekly decline of 0.83%.

Much like the broader U.S. equity market, FTInvest 11 contended with persistent volatility in some names and mixed sector dynamics that weighed on performance. The week’s pullback stands in contrast to the S&P 500, which managed a smaller decline of just 0.3% and continues to benefit from concentrated strength in its largest components.

While Friday’s rebound showed resilience, the week overall underscored the index’s sensitivity to shifting sentiment in high-growth names and cyclical sectors. Investors remain attentive to economic data and policy expectations that continue to steer market tone and direction.

Despite the setback, FTInvest 11 remains positioned near historic highs, highlighting that while the week brought a modest cooling, the broader trend has yet to lose its constructive footing.