S&P 500 Bulls Aren’t Just Charging, They’re in a Full Stampede


Simpler Trading Team

Jun 09th 2023  .  3 min read

 A Quiet Start, Awaiting Big News

Friday kicked off with a relatively calm start to the stock market. As major data and headlines took a backseat, stocks ended the day mixed, marking the end of a modest gain week. Futures overnight remained stable, underlining the market’s anticipation of upcoming inflation and Federal Reserve announcements. With the market focusing on upcoming data releases and potential policy changes, the week’s quiet start could herald significant movement in the days ahead.

Unpacking the Dow Jones Industrial Average

This week, the Dow Jones Industrial Average showed us that the old adage “slow and steady wins the race” still holds merit. There was a remarkable stability to this index, concluding at an impressive 32,876 points. This rise can be attributed to the strong performances across multiple sectors, with particular standouts in the industries of technology, healthcare, and consumer services.

While we did see some dips during the week, they were largely transient. The Dow’s closing figure is a testament to the resilience and enduring strength of blue-chip companies. Despite the ever-changing market variables, these stalwarts of industry continued their march upward. This, in turn, exemplifies the Dow’s stability in times of turbulence.

The S&P 500’s Impressive Run

The S&P 500, our benchmark index, stole the spotlight this week, ending at a commendable 4,298 points. This high value represents the culmination of many factors, not least of which was the positive performance of major tech companies. Additionally, there was a palpable wave of investor confidence, fueled by economic optimism and robust earnings reports.

Despite the market’s inherent volatility, the S&P 500 was able to maintain its momentum. This growth can be attributed to an amalgamation of different factors ranging from sector diversity, impressive quarterly earnings, and a rebounding economy, setting the stage for a positive outlook moving forward.

The Nasdaq Composite and the Tech Surge

In contrast to its peers, the Nasdaq Composite had an eventful week, shaped largely by the tech sector. This industry’s ability to adapt and innovate in the face of change has long been its strength, and this week was no exception. The tech-centric Nasdaq Composite ended the week at 14,528 points, a feat largely propelled by the notable performance of heavyweight tech firms.

Significant tech events, including major product launches, robust earnings reports, and exciting mergers and acquisitions, all played into the bullish trend. The combination of these factors, coupled with positive market sentiment and increased investor appetite for risk, painted a rosy picture for the Nasdaq Composite this week.

The Russell 2000, the index which typically flies under the radar due to its focus on small-cap companies, surprised us with a strong performance this week. Closing at 1,865 points, it presented a robust argument for the potential within small-cap markets, demonstrating the capacity for growth even amidst the market’s larger titans. This performance serves as a reminder that the market’s potential extends far beyond the familiar faces of the Fortune 500.

A Closer Look at Closing Figures

As the market curtain came down this week, we’re left with noteworthy closing figures across the different indices. The Dow Jones Industrial Average pulled off a respectable close at 33,876. The S&P 500, the standout performer of this week, didn’t disappoint, wrapping up at 4,298.

The Nasdaq Composite, largely propelled by the tech sector, concluded its weekly act at 15,376. While the small-cap index Russell 2000, surprising us all with its unexpected comeback, closed on a high note at 1,865.