U.S. equities finished a volatile week higher, but Applied Materials and Western Digital entered overbought territory with 14-day relative strength indexes above 70, signaling potential near-term pullbacks.
Applied Materials gained nearly 9 percent during the week, closing with an RSI of 77. Western Digital advanced 33 percent, reaching an RSI of 78. Both stocks moved higher following a Truth Social post from President Donald Trump stating that Intel had finalized a deal with Apple to design and manufacture chips within the United States.
Applied Materials also benefited from analyst action. Citi reiterated a buy rating and raised its price target to $710, implying 15 percent upside from Thursday's close.
In financials, Citigroup and Morgan Stanley also hit overbought levels. Citigroup rose 2 percent with an RSI of 75, while Morgan Stanley climbed 4 percent with an RSI of 74. Both touched new 52-week highs on Thursday.
Wells Fargo reiterated an overweight rating on Citigroup and increased its price target to $165 from $162, implying upside exceeding 15 percent. Analyst Mike Mayo said: "This is a 'different Citi' that's focused on 'durability, accountability, and execution.' Its script is to 'under-promise and over-deliver,' and we have an upward bias to estimates."
Accenture fell nearly 25 percent over the period, entering oversold territory with an RSI of 23. Shares tumbled about 18 percent on Thursday after the company agreed to acquire asset intelligence firm runZero, cybersecurity company Dragos (majority stake), and device and software supply chain security company NetRise.
The broader market swung sharply throughout the shortened week. Stocks rose Monday and Tuesday on hopes of a U.S.-Iran peace deal, but fears of a potential 2026 interest rate hike sent equities lower Wednesday. All three major indexes closed the week with gains after Thursday's rebound.
