U.S. stocks rallied sharply Friday as technology shares rebounded, chipmakers surged, and bitcoin stabilized after a volatile week, sending major indexes to their strongest gains in months.
By yourNEWS Media Newsroom
U.S. financial markets mounted a powerful comeback Friday, with stocks posting broad gains as technology shares rebounded from earlier losses and cryptocurrencies steadied after a steep pullback.
The Dow Jones Industrial Average climbed 1,025 points, or 2.1%, by early afternoon trading, while the S&P 500 rose 1.64%, putting it on track for its best session since May. The Nasdaq Composite gained 1.86%, helped by strong advances in semiconductor and technology stocks.
Chipmakers led the rally. Nvidia jumped 7.3%, trimming its weekly losses, while Broadcom surged 7.5%, fully recovering declines from earlier in the week. The gains reflected renewed optimism that spending tied to artificial intelligence development will continue despite investor concerns over rising costs.
Large technology companies remain under scrutiny for aggressive capital spending plans. Amazon said Thursday it expects to invest roughly $200 billion this year in areas including artificial intelligence, advanced chips, robotics, and low-Earth-orbit satellites. Similar announcements from Alphabet have fueled debate over whether such investments will deliver sufficient long-term returns. Amazon shares nevertheless fell 5.3% on the day, highlighting lingering skepticism.
Despite Friday’s rally, the S&P 500 remained on pace for its third losing week out of the past four. Concerns persist that massive AI spending may pressure future profits, while software stocks have also faced headwinds amid fears that AI tools could displace traditional services. Those worries intensified after Anthropic released free automation tools aimed at professional services such as legal work.
Cryptocurrency markets showed signs of stabilization. Bitcoin climbed back above $70,000 after briefly dipping near $60,000 late Thursday, following a multi-week slide from its October record. The rebound lifted shares of crypto-linked companies, including Robinhood Markets, which jumped 15%, Coinbase Global, up 11.3%, and Strategy, which surged 23.7%.
Precious metals also steadied after recent volatility. Gold rose 1.9% to $4,982 per ounce, while silver gained 0.3%, following last week’s pullback from rapid, politically driven rallies.
Smaller U.S. companies outperformed larger peers, with the Russell 2000 climbing 3.3%. Airlines were among the strongest performers, buoyed by signs of improving consumer confidence. Shares of United Airlines, Delta Air Lines, and American Airlines rose between 7% and 9%.
A preliminary survey from the University of Michigan showed consumer sentiment improving slightly, contrary to expectations for a decline. Gains were strongest among households that own stocks, while confidence among non-investors remained subdued, according to survey director Joanne Hsu.
Internationally, European markets mostly advanced despite a sharp 25% drop in shares of Stellantis, which announced a €22 billion charge as it scaled back electric vehicle production. Asian markets were mixed, though Japan’s Nikkei 225 rose 0.8%, helped by gains in Toyota Motor after announcing a leadership transition.
In the bond market, Treasury yields were little changed. The 10-year yield held at 4.21%, while the two-year yield edged up to 3.49%. The Federal Reserve has paused interest-rate cuts for now, despite calls from President Donald Trump for lower rates to stimulate economic growth.
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