Here are 3 major moments that drove the stock market last week

A major market pullback on Friday couldn't erase all the week's damage. After several days of selling, the tech sector rebounded and the Nasdaq gained more than 2% on Friday. Chipmakers Nvidia and Broadcom led the way with gains of 7.8% and 7.2%, respectively. The broad-based S&P 500 rose nearly 2% in one session. Despite the rise at the weekend, both indices decreased throughout the week. The Nasdaq lost 1.8% and the S&P 500 lost 0.1%. The story was different for Dow, which benefited from the transformation of growing names in software and technology into value areas such as finance and industrials. The gauge of 30 stocks rose more than 1,200 points on Friday, reaching an all-time high close of 50,115. Dow finished the week up 2.5%. .IXIC .SPX,.DJI mountain 2026-02-02 Nasdaq, S&P 500, Dow since Feb. 2 "A tremendous Dow rally," Jim Cramer said at Friday's Morning Meeting, adding: "We have a very strong Dow [in the portfolio] So I feel pretty good about that." Except for Amazon and Verizon, every stock in the median rose on Friday. 11 of the trust's portfolio's 34 stocks are Dow names, including Apple, Home Depot, Microsoft and Honeywell. We'll see on Monday whether Friday's rally has legs. Until then, here are three key moments that drove the market last week. 1. Everyone cared about capital spending Wall Street sees hyperscalers as a check on artificial intelligence. Given their big investments in emerging technology, both Alphabet as well as Amazon announced big increases in capital spending this year to build out its data centers and artificial intelligence offerings. But investors reacted differently to the news. Google's parent company released a stellar fourth-quarter report late Wednesday, announcing that 2026 spending could be more than double the previous year. Amazon shares were down 1.5% that day after its results missed management's current quarter profit forecast. It was still a solid quarter for the cloud computing and e-commerce giant. lowered the rest Software stocks were crushed earlier this week on fears that artificial intelligence would eat away at market share of traditional enterprise software (SaaS) companies as the sell-off continued, but this week's sell-off has put both companies, including best-of-breed cybersecurity companies, directly in the line of fire. The lack of love also meant money was moved to other areas of the market that were often overlooked. For example, we also dropped two Dow stocks that posted double-digit gains in 2026. We also had big gains in DuPont on Thursday for similar reasons. DuPont shares gained over 16% last week as capital turned into value. We even had a chance to sell one of our remaining stocks on Monday. We reduced some of the restaurant stock for the second time after it was up 15% year to date, not because of a slowdown in the company's business, but because of when beef inflation will finally hit. (See here for a full list of stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investment Club with Jim Cramer, you'll receive a trade alert 45 minutes after Jim posts a stock in his charitable trust's portfolio. THE ABOVE INVESTMENT CLUB INFORMATION DOES NOT EXIST OR GUARANTEE ANY RESULTS OR PROFIT RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB.