Major stock indexes continued their upward trajectory as the S&P 500 and Nasdaq Composite recorded their third consecutive week of gains. The tech-heavy Nasdaq led the pack, rising by 2.2%, while the S&P 500 and the Dow Jones Industrial Average followed suit with increases of 1.1% and 1%, respectively.
In the realm of individual stocks, shares of Oklo, a nuclear energy company, reached new heights, climbing nearly 25% on Friday alone to hit about $130. This marked the third successive day of all-time highs for the firm, which has surged around 55% over the course of the week and a staggering 500% in 2025. Analysts showed overwhelming support, with six out of eight recommending a “buy” rating, bolstered by Bank of America’s favorable outlook on Oklo amid the rising energy demands tied to artificial intelligence.
Investment strategies surrounding the ongoing AI-driven rally also garnered attention. Bank of America strategists highlighted that past equity bubbles saw average rises of 244%, suggesting the current run in big tech stocks could have significant room for growth. Termed the “Magnificent Seven,” these leading tech stocks have collectively soared 225% since March 2023 and are trading approximately 20% above their 200-day moving average. Despite ongoing concerns about a potential tech bubble, investors seem undeterred, drawn by the robust financial health and market positions of these companies.
On the small-cap side, the Russell 2000 index recently set a new record by closing at 2467.70, driven by anticipation of lower interest rates following the Federal Reserve’s recent decisions. Analysts noted that while small caps have lagged behind large caps in recent years, the current environment could favor their performance as financing costs decrease, potentially setting the stage for sustained growth.
Meanwhile, cybersecurity firm Netskope experienced a solid start post-IPO, with shares climbing nearly 7% on Friday following an 18% jump the previous day after debuting on the Nasdaq. The company’s revenue and its narrowing net loss indicated positive operational trends, amid a growing demand within the cybersecurity sector.
In stark contrast, shares of Scholastic fell significantly due to disappointing quarterly results which reflected schools’ hesitance in spending amid funding uncertainties. The company’s earnings report revealed a first-quarter loss of $97 million, prompting management to explore strategies such as sale-leaseback of real estate assets to bolster financial stability.
Amidst these developments, the broader market observed a slowdown in stock buyback activities, which some analysts predict may recover as economic uncertainties ease. Historical trends from prior buyback cycles indicate that recovery could bolster earnings-per-share growth in the long run.
In regulatory news, SEC Chairman Paul Atkins expressed support for a proposal to shift from quarterly to biannual reporting for corporations, a move aimed at allowing companies to concentrate more on operational efficiency rather than on meeting short-term reporting deadlines.
The housing sector faced its own set of challenges as shares of Lennar dropped after the company reported second-quarter earnings that fell short of expectations. The company’s CEO noted that while high mortgage rates have posed challenges, recent declines in rates could stimulate demand in the coming quarters.
Lastly, Citi downgraded Intel’s stock from “neutral” to “sell,” citing skepticism about the firm’s future success in the foundry business. Recently, the stock had seen a surge due to speculation regarding partnerships with Nvidia, but analysts now predict a downturn given their assessment of Intel’s competitive position relative to its peers.
Overall, market participants remain vigilant amid a landscape of fluctuating stock performances and evolving economic indicators.
