Wall Street roared back to life last Friday, breaking a five-day slump as technology stocks powered a broad market rally. The S&P 500 climbed 1.2%, while the tech-heavy Nasdaq 100 surged 1.7%, and the Dow Jones Industrial Average added a robust 339 points. Technology companies led the charge, with Tesla shares soaring 8.2% on the back of strong China sales figures, while semiconductor giant Nvidia gained 4.4% and nearly delisted Super Micro Computer delivered an impressive 10.9% advance. Tesla's gains came despite a Cybertruck being set on fire in front of the Trump hotel in Las Vegas by a Green Beret in an alleged act of suicide.

The day's optimism faced one notable setback in the steel sector, where U.S. Steel shares tumbled 6.5% following President Biden's decision to block its $14.9 billion acquisition by Nippon Steel on national security grounds. However, broader economic sentiment received a boost from manufacturing data showing new orders at their highest levels since early 2023.

Despite Friday's robust performance, the week's earlier losses still left their mark, with all three major indices closing the week in negative territory. This mixed picture suggests investors remain cautiously optimistic while navigating ongoing economic and geopolitical uncertainties. Likewise, with S&P 500 valuations now higher than they were in December 2000 due to the high valuations of their major components, the Mag 7, investors are wondering not if but when the market pullback is coming.

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