The U.S. stock market roared back on Friday as technology stocks recovered much of their losses from earlier in the week, and bitcoin halted its plunge.
The S&P 500 rallied 2%, marking its best day since May, while the Dow Jones Industrial Average soared 1,206 points, or 2.5%, topping the 50,000 level for the first time. The Nasdaq Composite rose 2.2%. Specifically, the S&P 500 jumped 134 points to close at 6,932. The Dow surged 1,207 points to 50,115.67, and the Nasdaq climbed 491 points to 23,031.
“Stocks are wrapping up a volatile week of trade on a high note. The S&P 500 has once again bounced directly off support at the 100-day moving average and surpassed resistance at 6,900. Broad-based buying pressure powered today’s rally as advancing shares are outpacing decliners by over 3:1,” said Adam Turnquist, chief technical strategist for LPL Financial, in an email.
### Technology Stocks Lead the Rally
Tech companies largely drove the widespread rally. Chipmaker Nvidia jumped 7.8%, trimming its losses for the week, while semiconductor company Broadcom climbed 7.1%, erasing its weekly drop. The two companies bolstered the S&P 500 amid hopes for continued customer spending on artificial intelligence (AI).
Amazon CEO Andy Jassy noted late Thursday that the company expects to spend about $200 billion on investments this year, aiming to capitalize on “seminal opportunities like AI, chips, robotics, and low earth orbit satellites.” Similar spending commitments were announced by Alphabet a day earlier.
However, such immense spending has sparked concerns about whether these investments will translate into profits. Reflecting this uncertainty, Amazon’s stock dropped 5.6% amid ongoing doubts about whether AI investments will pay off for tech giants.
Even with Friday’s surge, the S&P 500 still recorded its third losing week in the past four. Concerns about AI potentially displacing software companies also weighed on the market, with software stocks suffering after AI firm Anthropic released free tools to automate services like legal work.
### Bitcoin Rebounds
Meanwhile, bitcoin steadied following a weeks-long plunge that had sent its price to more than halfway below its record set last October. The cryptocurrency climbed back above $70,000 after briefly dipping close to $60,000 late Thursday.
### Metals Market Calms
Prices in the metals market also settled somewhat after wild swings. Gold rose 1.8% to settle at $4,979.80 per ounce, while silver added 0.2%. These precious metals had recently experienced jaw-dropping rallies as investors sought safe-haven assets amid mounting global geopolitical uncertainty.
### Crypto Stocks Surge
On Wall Street, bitcoin’s recovery boosted stocks of companies linked to the crypto economy. Robinhood Markets jumped 14%, posting the biggest gain in the S&P 500. Crypto trading platform Coinbase Global rose 13%, and Strategy, a company known for buying and holding bitcoin, soared 26.1%.
### Consumer Sentiment Improves
Stocks of smaller U.S. companies also helped lead the rally, boosted by encouraging consumer sentiment data. A preliminary report from the University of Michigan indicated that U.S. consumer sentiment improved slightly, surprising economists.
The improvement was strongest among households owning stocks, benefiting from the S&P 500’s recent record high. “Market sentiment improved after today’s positive report out of the University of Michigan. Median 1-year inflation expectations hit the lowest since January 2025, providing some comfort for investors eager to see improving inflation metrics,” Jeffrey Roach, chief economist for LPL Financial, said in an email.
Roach added, “We think the markets may have to work through more jitters with a new Fed chair, but in the end, we think the Fed will cut rates later this year, which will grease the skids for more market appreciation.”
To be sure, sentiment “remained at dismal levels for consumers without stock holdings,” according to Surveys of Consumers Director Joanne Hsu.
### Airline Stocks Strengthen
Airline stocks strengthened on hopes that increased confidence among U.S. households will lead to more spending on trips. United Airlines gained 9.3%, Delta Air Lines rose 8%, and American Airlines added 7.6%.
—
The strong rebound in technology stocks, bitcoin, and consumer sentiment are positive signs for the market as investors navigate ongoing uncertainties surrounding AI investments and economic conditions.
https://www.cbsnews.com/news/dow-jones-stock-market-bitcoin/