Dow Jones, S&P 500, and Nasdaq 100 market performance

What happened: U.S. stock indexes experienced a volatile week, with the S&P 500, Dow Jones, and Nasdaq 100 rallying and retreating in response to economic data and sector-specific movements. On Monday and Wednesday, indexes climbed on strength in megacap tech stocks and a Fed-friendly CPI report, with the Nasdaq 100 up 1.26% and 0.97%, respectively. However, on Thursday, indexes slid due to Fed rate hike fears and tech sector pressure, with the S&P 500 and Nasdaq Composite down 1.21% and 1.34%, respectively. The S&P 500 and Nasdaq 100 closed at record highs on Tuesday, up 0.81% and 1.31%, respectively, driven by tech strength.

Market impact: Tech stocks, particularly big tech and chip stocks, drove market movements. On rally days, these stocks pushed indexes higher, while on retreat days, they weighed on indexes. Banks and managed healthcare also contributed to gains on Thursday, while energy and materials sectors lagged due to slumping crude oil prices.

What to watch next: Investors should monitor the Fed's next policy meeting on July 27-28 for clarity on the pace of rate hikes. Additionally, earnings season is approaching, with major tech companies like Apple and Microsoft reporting in late July. The market's reaction to these earnings reports could significantly impact tech stocks and overall index performance. Lastly, the July jobs report on August 6 will provide insight into the labor market's health and potentially influence the Fed's decision-making.