Stocks climbed on Friday, marking the second straight day of gains that erased earlier weekly losses. Technology shares, especially those tied to artificial intelligence, led the rally, pushing the S&P 500 and Nasdaq higher.
Market Summary
The S&P 500 closed at 6,834.50, up 59.74 points or 0.9%, marking a 0.1% gain for the week. The Dow Jones Industrial Average finished at 48,134.89, up 183.04 points or 0.4%. The Nasdaq, heavily weighted toward technology, ended at 23,307.62, up 301.26 points or 1.3%, and recorded a 0.5% weekly rise.
Tech Sector Drives Gains
Nvidia led the market with a 3.9% jump, followed by Broadcom, which gained 3.2%. The technology sector has been the primary engine for Wall Street this year, but investors are increasingly questioning the valuation of high-growth names.
Oracle surged 6.6% after announcing a 15 % stake in TikTok U.S. alongside Silver Lake and MGX, ensuring the platform can continue operating in the United States.
Corporate Earnings and Tariffs
Earnings reports and tariff impacts dominated the day. Nike fell 10.5% as tariff effects outweighed a strong quarterly profit. Lamb Weston dropped 25.9% despite beating profit and revenue forecasts. Winnebago Industries rose 8.4% after posting quarterly results that comfortably exceeded analysts’ estimates. Homebuilders saw a decline; KB Home fell 8.5% after a report showed home sales slowed for the first time since May.
Consumer Sentiment and Inflation
A University of Michigan survey revealed that consumer sentiment in December improved slightly from November but remained nearly 30 % below December 2024 levels. “Despite some signs of improvement to close out the year, sentiment remains nearly 30 % below December 2024, as pocket book issues continue to dominate consumer views of the economy,” wrote Surveys of Consumers Director Joanne Hsu.
Inflation data from Thursday showed a 2.7 % rise in the consumer price index for November, but economists cautioned that the figure could be distorted by a 43-day federal shutdown.
“The wave of economic data did little to provide clarity for investors this week … keeping the market in the trading range it has been in since September,” said Mark Hackett, chief market strategist at Nationwide, in a note to investors.
Inflation remains above the Federal Reserve’s 2 % target. The Fed cut its benchmark interest rate at its most recent meeting but is likely to keep rates steady at the next January meeting, as it weighs the risk of a slowing job market against the threat of higher inflation.
Treasury Yields and Global Markets
Treasury yields edged higher; the 10-year yield rose to 4.15 % from 4.11 % late Thursday. Japanese stocks gained after the Bank of Japan lifted its benchmark rate to the highest level in 30 years. The Nikkei 225 rose 1 %, leading gains across Asia’s key markets, while European markets also moved higher.
Key Takeaways
- Technology stocks, led by AI-focused companies, were the main driver of Friday’s gains.
- Nvidia and Broadcom were the biggest contributors to the Nasdaq’s 1.3 % rise.
- Consumer sentiment is weak, and inflation remains above the Fed’s target, keeping policy uncertainty high.
The day’s rally underscores the resilience of tech names amid broader economic concerns, while earnings and tariff news continue to shape market sentiment.
