Stocks rose for the second straight day on Wall Street on Friday, erasing losses earlier in the week.
Technology stocks, particularly those focused on artificial intelligence, once again dominated the broader market movement. Despite some stumbles earlier this week, both the S&P 500 and Nasdaq ended the week higher.
The S&P 500 rose 59.74 points, or 0.9%, to 6,834.50. It rose 0.1% for the week. The Dow Jones Industrial Average rose 183.04 points, or 0.4%, to 48,134.89.
The technology-heavy Nasdaq was the biggest mover. The index rose 301.26 points (1.3%) to 23,307.62, marking a weekly increase of 0.5%.
Nvidia was the biggest driver of the market rally, rising 3.9%. Broadcom rose 3.2%.
The technology sector has continued to fuel Wall Street throughout the year, as hugely valued companies like Nvidia have increased pressure on the market. But the company has come under intense scrutiny from investors who question whether such high stock prices are justified.
Oracle rose 6.6% on news that it has signed an agreement with two other investors to form a new TikTok U.S. joint venture. Oracle, Silver Lake, and MGX each have a 15% share of the popular social video platform, ensuring their continued presence in the United States.
Corporate earnings and how they perform amid tariffs and inflation were a key focus on Wall Street.
Nike’s strong quarterly profit report was overshadowed by the impact of tariffs, and shares fell 10.5%. Frozen potato maker Lamb Weston also fell 25.9% despite beating Wall Street’s profit and sales expectations.
Winnebago Industries rose 8.4% after its latest quarter’s profit and sales easily beat analysts’ expectations.
Home builders fell after reports that home sales slowed year-on-year for the first time since May. KB Home fell 8.5%.
According to a University of Michigan survey, consumer sentiment improved slightly in December compared to November, but was significantly lower than a year ago.
“Despite some signs of improvement towards the end of the year, the issue of pocket money continues to dominate consumers’ views on the economy, and sentiment remains nearly 30% below December 2024,” said Joan Hsu, Director of Consumer Research.
Consumer confidence has declined throughout the year as persistent inflation weighs on consumers. As retail sales slump, the job market is also slowing. Businesses and consumers are also concerned about the continuing impact of a broader U.S.-led trade war targeting key partners including China and Canada.
The latest inflation update on Thursday revealed an unexpected cooling in prices in November. The Department of Labor announced that the consumer price index rose by 2.7%. But economists quickly warned that these numbers were questionable because they were lagged and may have been skewed by the 43-day federal government shutdown.
“A wave of economic data did little to bring clarity to investors this week, with markets stuck within the trading ranges seen since September,” he said. Mark Hackett, chief market strategist at Nationwide, said in a note to investors.
Inflation remains above the US Federal Reserve’s target of 2%. The central bank lowered the benchmark interest rate at its most recent meeting. There are concerns that a slowdown in the job market will have a negative impact on the economy. However, lowering interest rates could further accelerate inflation and could hinder economic growth.
The Federal Reserve remains cautious about its interest rate policy heading into 2026, with many on Wall Street expecting to keep rates unchanged at its next meeting in January.
In the bond market, government bond yields rose. The yield on the 10-year U.S. Treasury rose to 4.15% from 4.11% late Thursday.
Japanese stocks rose after the Bank of Japan raised its benchmark interest rate to the highest level in 30 years. In Tokyo, the Nikkei Stock Average rose 1%, leading the rise in all major Asian markets. The European market has also emerged.
Troise is a contributor to The Associated Press.
