Stocks Finish Higher as SpaceX Debut and Falling Oil Prices Cap a Constructive Week

The stock market closed a volatile week on a positive note, with easing geopolitical tensions and another sharp decline in oil prices helping support broad-based gains. The S&P 500 advanced 0.5%, the Nasdaq Composite gained 0.3%, and the Dow Jones Industrial Average rose 0.7%, allowing all three major indices to finish the week in positive territory.

Friday’s session was highlighted by one of the most anticipated market events of the year: the debut of SpaceX. The aerospace and space technology giant priced its IPO at $135 per share, raising capital through an offering of 555.6 million shares. Investor enthusiasm was evident from the opening bell, with the stock opening at $150 before extending gains throughout the session to close more than 19% above its offering price.

The successful debut generated significant attention across the broader market and contributed to some volatility among mega-cap stocks. Several market participants suggested that investors may have trimmed positions in established technology leaders to free up capital for the SpaceX offering. At the same time, many of those names were coming off strong gains from the previous session, making some profit-taking unsurprising.

Among the mega-cap group, Amazon lagged while Tesla recovered from early weakness to finish higher, helping the consumer discretionary sector erase intraday losses. The Vanguard Mega Cap Growth ETF ended the session little changed, reflecting the mixed performance across the market’s largest growth stocks.

Technology stocks experienced a similarly uneven session. However, continued strength among semiconductor companies provided important support. The Philadelphia Semiconductor Index advanced another 1.5%, adding to what was already an impressive weekly gain.

Advanced Micro Devices stood out after receiving an analyst upgrade and a higher price target, helping drive renewed interest across the semiconductor space. The sector’s resilience reinforced the view that investor appetite for AI-related investments remains strong despite recent volatility.

Not all technology names participated in the advance. Adobe fell sharply despite delivering earnings that exceeded expectations. Investors focused instead on concerns surrounding the company’s evolving business strategy, increased emphasis on AI engagement initiatives, and the announced departure of its chief financial officer.

Outside the technology sector, market participation remained encouragingly broad. Falling oil prices continued to support cyclical and interest-rate-sensitive groups. Crude oil futures dropped another 3.3% to settle at $84.88 per barrel amid growing optimism that the United States and Iran are nearing a formal peace agreement that could be finalized as early as next week.

The decline in energy prices provided a significant tailwind for equities. Materials led all sectors with a 1.8% gain as chemical producers and commodity-related companies outperformed. Financials advanced 1.4%, while utilities and real estate also posted solid gains as investors continued rotating into a wider range of sectors beyond technology.

Notably, health care was the only S&P 500 sector to finish lower.

Smaller companies also participated in the rally. The Russell 2000 gained 0.8%, while the S&P MidCap 400 added 0.7%, further reinforcing the theme of improving market breadth that has emerged throughout the week.

Overall, the market ended the week on a constructive note. A successful SpaceX IPO, ongoing leadership from semiconductor stocks, broad participation across cyclical sectors, and easing geopolitical concerns combined to create a favorable backdrop for risk assets. Perhaps most encouraging for investors was the continued expansion of market leadership beyond a handful of mega-cap technology names, suggesting that the rally is becoming increasingly broad-based as the market heads into the new week.

Our FTInvest 11 model portfolio declined 1.73% to close at 981.32, reversing much of the previous session’s rebound and extending the volatility that has characterized trading in recent weeks. The portfolio remains below the 1,000 level and is now approximately 9.0% below its all-time high of 1,078.93, reached in late May.

Despite the recent weakness, FTInvest 11 remains up approximately 5.73% year-to-date. A significant portion of the recent underperformance continues to be linked to a single portfolio component facing liquidity-related challenges, which has had an outsized impact on overall results. While short-term sentiment remains cautious, the portfolio’s disciplined, value-driven investment strategy remains focused on long-term fundamentals and navigating periods of market turbulence with patience and conviction.