The U.S. stock market is making a strong comeback on Friday, with technology stocks bouncing back from earlier losses and bitcoin stabilizing, at least for now.
The S&P 500 surged 1.7% on Friday, on track for its best day since May. The Dow Jones Industrial Average jumped 1,102 points, or 2.2%, surpassing the 50,000 level for the first time. The Nasdaq composite was up 1.9% as of 2:30 p.m. Eastern time.
Chip companies played a key role in driving the overall rally, with Nvidia rising 7.3% and Broadcom climbing 7.2%. These gains helped boost the S&P 500, fueled by optimism around continued investment in artificial intelligence technology. Amazon, for instance, announced plans to spend about $200 billion on investments this year in areas like AI, chips, robotics, and satellites.
However, concerns linger around the impact of heavy spending on future profits, as seen in Amazon’s 7% stock drop. The S&P 500, despite Friday’s rally, faces the prospect of its third losing week in the last four, partly due to worries over AI spending by tech giants and the potential competition it poses to software companies.
On the cryptocurrency front, bitcoin stabilized after a weekslong plunge. Gold and silver prices also saw some stability following recent fluctuations driven by investor demand for safe havens.
Overall, the market rebound was supported by positive consumer sentiment data and gains in sectors like airlines and small-cap stocks. While challenges remain, particularly in the realm of AI and tech spending, Friday’s rally offered a glimmer of hope for investors.
Stocks in global markets showed mixed performance, with European indexes rising while Asian markets experienced some declines. The bond market remained relatively stable, with Treasury yields holding steady.
