Weekly Market Update: Stocks Gain 2.17% as Technology Rises and Energy Falls

US stocks moved higher this week as technology names continued benefiting from the AI infrastructure rally, helping major indexes reach fresh highs while energy stocks moved lower.

The Morningstar US Market Index gained 2.17%, supported mainly by technology, while the S&P 500 rose 2.33% and the Nasdaq climbed 4.51%.

Market leadership remained concentrated in growth names.

Performance across styles showed:

Growth stocks: +3.42%
Blend stocks: +1.94%
Value stocks: -0.8%

Large caps also outperformed smaller names:

Large caps: +2.73%
Mid caps: +0.55%
Small caps: +1.31%

Technology Continues to Dominate

Technology was the strongest sector of the week, rising 6.7%, as investors continued favoring AI-related names.

Some of the biggest winners included:

Datadog +42.4%
Akamai Technologies +42.2%
Taboola +38.4%
Micron Technology +37.7%
IREN +34.1%

Several of these stocks have already posted major gains over the past year, reflecting how strongly investors continue to back AI infrastructure and semiconductor demand.

At the same time, some valuations are beginning to stretch, with multiple names trading above estimated fair value.

Energy Falls as Oil Pulls Back

While tech rallied, energy moved in the opposite direction.

The energy sector dropped 5.55%, making it the weakest performer of the week as oil prices retreated.

Key market moves included:

WTI crude: -7.4% to $94.90
Gold: +2.5%
10-year Treasury yield: slightly lower at 4.38%

The decline in oil helped reduce some inflation concerns, even as investors continue monitoring geopolitical risks.

Not Every Stock Joined the Rally

The market moved higher overall, but weakness remained underneath.

Major laggards included:

Optimum Communications -29.4%
Cogent Communications -28.1%
Tandem Diabetes Care -20.3%
Wingstop -19.3%
Freshpet -18.5%

Interestingly, several underperformers now trade below estimated fair value, suggesting investors may begin looking for opportunities outside AI leaders.

Markets are still following the AI story, and technology remains the biggest winner.

But beneath the rally, another trend is starting to appear: AI leaders continue moving higher, while value opportunities may be quietly building elsewhere.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.