S&P 6K! AI Stocks Power Market Comeback

S&P 500 Reclaims 6,000! Stocks Soar Post-Jobs Report; Tesla Bounces Back

The S&P 500 finally broke through the 6,000-point barrier on Friday, a feat not seen since February, as the stock market surged following a positive jobs report. This milestone signals renewed investor confidence and sets the stage for what could be a dynamic summer in the markets. Let's dive into the key movers and shakers that fueled this week's performance.

Biggest S&P 500 Movers: The Friday Frontrunners

Friday saw a diverse range of companies leading the charge, with tech and healthcare stocks making significant strides:

• Palantir Technologies (PLTR): The big-data analytics software provider soared by 6.5%, claiming the top daily performance spot in the S&P 500. This surge was fueled by optimism surrounding its expanding government business and the broader positive sentiment towards AI companies after Broadcom's strong earnings report revealed robust AI demand.
• Moderna (MRNA): After a week of volatile trading, Moderna shares jumped 5.1%. This boost followed the FDA approval of its new COVID-19 vaccine for older and high-risk patients. Adding to the positive momentum, the Health and Human Services Secretary announced Moderna's agreement to conduct a placebo-controlled trial of the vaccine.
• United Airlines (UAL): Announcing a strategic partnership with Spotify Technology (SPOT), United Airlines saw its shares increase by 4.8%. This collaboration will allow passengers to access Spotify's vast library of playlists, audiobooks, and video podcasts on seatback screens. Rival carrier Delta Air Lines (DAL) also benefited, with shares up 4.3%.
• Tesla (TSLA): After a tumultuous prior session, Tesla shares rebounded by 3.7% as tensions between CEO Elon Musk and U.S. President Donald Trump appeared to ease. Analysts reaffirmed their bullish stance on Tesla, emphasizing its leadership in robotics, autonomous driving, and artificial intelligence.

The Declining Stocks

Not all companies experienced gains on Friday. Several factors contributed to the decline of these companies:

• Lululemon Athletica (LULU): The athletic apparel maker faced a significant setback, with shares plummeting 19.8% after issuing lower-than-expected sales and profit guidance for the current quarter. Lululemon cited cautious spending by U.S. consumers and plans to increase prices to mitigate tariff impacts as reasons for the revised outlook. Analysts from JPMorgan and UBS subsequently lowered their price targets on the stock.
• Broadcom (AVGO): Despite reporting fiscal second-quarter results roughly in line with forecasts, Broadcom shares slipped 5%. Investors may have had loftier expectations, especially after rival Nvidia's blockbuster results. The company's CEO, Hock Tan, noted that chip demand may accelerate during the second half of 2026, driven by strong inference demand.
• Mosaic (MOS): As a provider of fertilizers and other agricultural products, Mosaic reduced its 2025 phosphate production guidance, citing operational issues at its U.S. facilities. As a result, the company's shares were down 4.4%.

Market Index Overview

The S&P 500 wasn't the only index making waves. Here's a quick rundown:

• S&P 500: Closed the week just 2.4% away from its record closing high set on Feb. 19, up 2% since the start of 2025.
• Nasdaq Composite: Gained 1.1% so far this year.
• Dow Jones Industrial Average: Increased by 0.5% since the beginning of the year.

For the week, the Dow rose 1.2%, while the S&P 500 and Nasdaq tacked on 1.5% and 2.2%, respectively.

Analyst Insights: Tesla's Outlook After Trump-Musk Feud

Despite the public spat between Elon Musk and President Trump, several Wall Street analysts remain optimistic about Tesla. Wedbush analysts, with a $500 price target, acknowledged the feud but maintained their bullish view, emphasizing Tesla's leadership in key technological areas. However, they cautioned that the tensions could complicate regulatory approvals for Tesla's self-driving technology. Morgan Stanley analysts, with a $410 price target, echoed similar sentiments, noting that the feud could alienate potential customers but that the long-term drivers of the stock's value remain intact.

Apple's WWDC Preview

All eyes are on Apple as its Worldwide Developers Conference (WWDC) kicks off Monday. CEO Tim Cook is expected to unveil new AI features under the "Apple Intelligence" umbrella and potentially announce new partnerships, including a possible deal with Google to integrate the Gemini large language model. The conference will also provide insights into the latest iOS updates and Apple's future product roadmap.

Microsoft's Record Highs

Microsoft continues its upward trajectory, hitting another record high as analysts see further potential for growth. Bernstein raised its price target to $540, citing the company's partnership with OpenAI as a significant revenue driver. Goldman Sachs also increased its target to $550, projecting $300 billion in cloud revenue by 2029. Microsoft is currently vying with Nvidia for the title of the world's most valuable company, with a market cap of around $3.5 trillion.

Nvidia's Staggering Per-Employee Value

Nvidia's incredible market capitalization translates to a staggering per-employee value of over $90 million. This figure dwarfs that of many other tech giants, highlighting Nvidia's operational efficiency and reliance on intellectual property. Deutsche Bank research strategist Jim Reid noted that Nvidia's "employment density" is in a league of its own, similar to Cisco in the late '90s.

Docusign's Setback

Docusign shares experienced a significant drop after the company lowered its full-year billing outlook. The shift to an AI-driven agreement platform impacted early renewals, leading to a decline in billings. Despite better-than-expected first-quarter results and an increase in the stock buyback program, investors reacted negatively to the revised guidance.

IPO Watch: Omada Health and Circle Internet Group

The IPO market continues to generate excitement, with Omada Health set to debut on the Nasdaq and Circle Internet Group shares soaring after their initial public offering. Circle, in particular, has seen remarkable gains, driven by strong investor interest in the stablecoin market. The stock was up 18% at $98 in recent trading, after soaring 168% during their debut on the New York Stock Exchange Thursday.

Lululemon's Disappointing Outlook Leads to Stock Plunge

Lululemon shares took a hit following a disappointing second-quarter outlook and a cut to the full-year profit forecast. The company cited cautious consumer spending and plans to mitigate tariff impacts as factors contributing to the revised outlook. Analysts lowered their price targets on the stock in response.

Looking Ahead

Friday's market surge and the S&P 500's breakthrough of the 6,000-point mark provide a positive outlook for the weeks ahead. While some companies face challenges, others are thriving, driven by innovation, strategic partnerships, and evolving market dynamics. As always, staying informed and adapting to these changes is crucial for investors looking to navigate the ever-evolving financial landscape.

Tags: S&P 500, Palantir, PLTR, AI stocks, Broadcom, AVGO, Tech stocks, Stock market, Friday movers, AI demand

Source: https://www.investopedia.com/dow-jones-today-06062025-11749583