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S&P 500 Posts Slight Weekly Gain as Tech Earnings Top Expectations

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The Standard & Poor's 500 index edged up 0.5% this week amid stronger-than-expected quarterly reports from tech companies including Salesforce (CRM) and CrowdStrike (CRWD).

The S&P 500 ended the week at 7,711.76. With just one session remaining in the month, the market benchmark is up 3% for August and has climbed 13% this year.

At the annual Jackson Hole Economic Policy Symposium, Federal Reserve Chairman Kevin Warsh reaffirmed his commitment to the Fed's mandates, including the 2% inflation goal. Warsh said inflation numbers were concerning, citing the Fed's preferred metric -- the personal consumption expenditure price index -- which was unchanged at 3.7% year over year in July.

Data released earlier this week showed US economic growth, measured by gross domestic product, rose by 1.5% in Q2. This was unrevised from the advance estimate released last month and matched expectations in a survey compiled by Bloomberg.

The University of Michigan consumer sentiment index was revised upward on Friday to 51.7 for August from 51.0 in the preliminary estimate, compared with expectations for no revision in a survey compiled by Bloomberg. The latest reading was still below July's final print of 55.2.

The technology sector had the largest percentage increase this week, climbing 1.8%, followed by a 1.6% advance in communication services and a 1.1% rise in financials. Consumer discretionary eked out a 0.1% gain.

Salesforce was the best performer in both the technology sector and the overall S&P 500 this week, jumping 22%. The company reported fiscal Q2 adjusted earnings and revenue above analysts' mean estimates and boosted its fiscal 2027 guidance.

CrowdStrike had the second-largest percentage gain in technology and the overall S&P 500, climbing 14%. The company reported better-than-expected fiscal second-quarter results. CrowdStrike also raised its guidance for full-year net new annual recurring revenue, or ARR, amid increasing demand for cybersecurity solutions to address artificial intelligence risks.

The health care and energy sectors fell 2% each, followed by a 1.7% decline in industrials and a 1.3% slip in real estate. Consumer staples, materials and utilities also edged lower.

Boston Scientific (BSX) had the largest percentage loss in health care for the week, shedding 7%. The company is recalling thousands of its percutaneous catheters due to possible arterial sheath tip separation that could lead to complications with a retained tip, the US Food and Drug Administration said.

The decline in energy came as crude oil futures also fell on the week. Mediators in the Iran war are stepping up efforts to get the Strait of Hormuz reopened, Reuters reported. Top decliners in the sector included EOG Resources (EOG), which fell 6.3% amid an investment rating downgrade by Capital One to equal weight from overweight.

Earnings reports next week are expected from companies including Palo Alto Networks (PANW), Dell Technologies (DELL), Medtronic (MDT), Broadcom (AVGO) and Snowflake (SNOW).

Investors will be heavily focused on the government's August employment report, due Friday. Other reports will include July construction spending and factory orders.

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