US stocks closed out the week with strong gains on Friday, led by technology shares. The Nasdaq Composite jumped 0.98% to a record 21,450.02, marking its second consecutive all-time high. Earlier in the session, it also reached a fresh intraday peak. The S&P 500 advanced 0.78% to 6,389.45, just shy of a record, while the Dow Jones Industrial Average rose 206.97 points, or 0.47%, to 44,175.61.
For the week, the Nasdaq surged 3.9%, the S&P 500 climbed 2.4%, and the Dow added 1.4%, capping a run of solid performances across the major indices.
Apple fuels tech gains
Apple was the standout driver for the tech sector, surging 13% last week, its best weekly performance since July 2020. The rally followed the company’s announcement of plans to invest about US$600bn over four years in the United States, a move seen as aligning with President Donald Trump’s economic priorities.
Apple’s momentum accelerated after Trump declared a 100% tariff on imported semiconductors and chips, exempting companies producing domestically. Shares added another 4.2% on Friday.
Trade policy backdrop
Investors appeared to take the new semiconductor tariffs as less severe than feared, while largely looking past the latest wave of “reciprocal” duties that came into effect at midnight Thursday. Among the steepest rates are 41% on Syrian imports, and 40% on goods from Laos and Myanmar.
On Friday, Trump warned courts against overturning his tariff policy, claiming such a move could trigger “1929 all over again.” Markets had reacted sharply back in April when the tariffs were first unveiled, sending the S&P 500 into correction territory after its biggest single-day drop since 2020.
Australian market outlook
Australian shares are set for a cautious open on Monday ahead of a Reserve Bank meeting expected to deliver a third interest rate cut this year. The SPI 200 futures were up 5 points, or 0.1%, after the benchmark gained 1.7% last week.
Markets have fully priced in a 25-basis-point cut to 3.6% on Tuesday, with all 40 economists surveyed by Reuters forecasting the move following slower core inflation and a surprise uptick in unemployment.
The July labour force report is due later this week, alongside a busy earnings calendar featuring JB Hi-Fi, Life360, AGL Energy, Commonwealth Bank, and the ASX. In the US, inflation data on Tuesday will also be closely watched for any signs of renewed price pressures.
