The Standard & Poor's 500 index rose 1.2% this week, lifted by a fresh burst of AI enthusiasm amid geopolitical jitters as Washington and Tehran resumed high-stakes negotiations.
The S&P 500 ended Friday's session at 7,575.39, securing a second straight weekly advance. The gauge has gained 1% in July and is up 11% this year.
AI sentiment got a boost Friday from the strong Nasdaq debut of SK Hynix (SKHYV). The South Korean chipmaker's American depositary shares jumped 13% to $168.40 after the offering of 177.9 million ADSs priced at $149 apiece.
Investors were also watching developments in US-Iran diplomacy. President Donald Trump said the US will continue negotiations with Iran, while reiterating that their ceasefire is over.
Technology led sector gains for the week, rising 3.4%, followed by a 3.2% advance in energy and a 2.3% increase in communication services. Consumer discretionary and financials edged higher.
Hewlett Packard Enterprise (HPE) jumped 18% this week, and Arista Networks (ANET) advanced 17%, the biggest gains in tech.
Baker Hughes (BKR) recorded the largest gain in the energy sector, climbing 9.1%, as the company received conditional approval from the European Commission to acquire Chart Industries (GTLS).
Meta Platforms (META) shares rose 15%, leading communication services. CEO Mark Zuckerberg said the company is considering renting out some of its AI computing capacity, Bloomberg reported.
Materials fell 2.2%, followed by a 1.9% loss in healthcare. Consumer staples dropped 1.3%, and industrials shed 1.1%, while utilities and real estate edged lower.
International Flavors & Fragrances (IFF) shares fell 7.5%, and Albemarle (ALB) dropped 7%, the steepest weekly losses in materials.
The quarterly earnings season is set to move into full swing next week. Reports are expected from JPMorgan Chase (JPM), Bank of America (BAC), Goldman Sachs Group (GS), Wells Fargo (WFC), Citigroup (C) and Morgan Stanley (MS). Other large companies expected to report include Johnson & Johnson (JNJ), UnitedHealth Group (UNH), GE Aerospace (GE), Netflix (NFLX) and Abbott Laboratories (ABT).
Economic data will include June retail sales, the June consumer price index, and the June producer price index.