The U.S. stock market ended a five-week positive streak as investors feared that slowing economic momentum could impact the earnings outlook for American corporations.

The U.S. economy grew at an annualized rate of 1.3% in the first quarter, marking a downward revision from the previous estimate of 1.6%.

The Fed's preferred inflation measure remained steady in April, easing some worries about resuming price pressures. Yet, slowing spending and income growth also signaled weakening consumer health, while the Chicago business activity gauge plummeted to its lowest level since May 2020, raising concerns about a potential end-cycle slowdown.

The tech sector, as tracked by the Technology Select Sector SPDR Fund (NYSE:XLK), was the worst performer of the week, while utilities, tracked by the Utilities Select Sector SPDR Fund (NYSE:XLU), outperformed as investors shifted their focus to defensive sectors.

Trump Stock Drops

Trump Media & Technology Group Corp (NASDAQ:DJT)'s stock fell after former President Donald Trump was found guilty of 34 charges related to falsified business records. Despite strong support from some investors, concerns over the company's financial performance and the decline in user engagement on Truth Social have impacted investor sentiment.

Nvidia Valuation Soars

Nvidia Corp. (NASDAQ:NVDA) saw its market capitalization surge to $2.805 trillion, surpassing the combined value of Tesla Inc. (NASDAQ:TSLA), Exxon Mobil Corp. (NYSE:XOM), Walmart Inc. (NYSE:WMT), Costco Wholesale Corp. (NASDAQ:COST), Netflix Inc. (NASDAQ:NFLX), Intel Corp. (NASDAQ:INTC), Walt Disney Co. (NYSE:DIS), and PepsiCo Inc. (NASDAQ:PEP). The company's stock hit new all-time highs due to increased investor confidence, partly driven by Nvidia's advancements in AI technology and the potential use of its products in Elon Musk's supercomputing projects.

Record Home Prices

U.S. home prices reached all-time highs in March 2024, with a 7.4% year-on-year increase, marking the fastest growth rate in over a year. San Diego led with an 11.1% annual gain, followed by New York and Cleveland.

Stocks Outperforming Nvidia

Nvidia's stock surged 186% over the last year, driven by AI chip demand. Seven other U.S. stocks, including Vera Therapeutics Inc. (NASDAQ:VERA) and MoneyLion Inc. (NYSE:ML), more than doubled Nvidia's returns. These companies benefited from advancements in biotech, fintech and retail, showcasing diversified industry growth.

Biden's Ceasefire Plan

President Joe Biden proposed a comprehensive ceasefire deal between Israel and Hamas on Friday, emphasizing a roadmap for enduring peace and the release of hostages. The plan includes a ceasefire, prisoner exchanges, and Gaza's reconstruction with international cooperation.