Wall Street Rebounds as Dow Surpasses 50,000 Amid Tech Recovery and Bitcoin Bounce
Stocks surged on Friday, , marking a significant rebound from recent tech-driven declines. The Dow Jones Industrial Average crossed the 50,000 threshold for the first time ever, gaining over 1,000 points and turning positive for the week. The S&P 500 and Nasdaq Composite also saw substantial gains, though both indexes remain on track for weekly losses.
The Dow advanced 1,101 points, or 2.3%, closing at a record high. The S&P 500 jumped 1.7%, while the Nasdaq Composite traded up 1.9%. This rally followed several days of heavy selling in the technology sector and a dramatic reversal for Bitcoin, which had experienced a significant rout earlier in the week.
Despite Friday’s gains, the S&P 500 is still poised for a slight weekly decline of 0.3%, and the Nasdaq is down approximately 2% for the week. However, the 30-stock Dow is currently up 2% week-to-date, benefiting from a shift in investor focus towards economically cyclical stocks.
Several key technology stocks led the market’s recovery. Nvidia and Broadcom both increased by 7% following substantial declines earlier in the week. Oracle rose 3%, and Palantir Technologies was up by 4%, as investors reassessed these companies at lower price levels. However, some software stocks, including ServiceNow, remained weak, continuing to be impacted by concerns surrounding artificial intelligence disruption.
“We’re in a gold rush right now with AI,” said Gabriel Shahin, founder of Falcon Wealth Planning. “You have the investment that Google is making, Nvidia is making, that Meta is making, that Amazon is making. There is money that will be deployed. It’s just the carousel [of money movement] sometimes scares people.”
Shahin believes the market is undergoing a “great recalibration,” with investors moving out of growth stocks and into value investments. This shift reflects a reassessment of risk and a search for more stable returns in a changing economic landscape.
The cryptocurrency market also experienced a turnaround, with Bitcoin rebounding to above $68,000 after reaching a 16-month low overnight. Despite this recovery, Bitcoin is still expected to post its worst weekly performance since 2022, having erased all gains made following the 2024 election.
Amazon’s stock, however, bucked the trend, tumbling 7% after the company announced plans to significantly increase capital expenditure to at least $200 billion in 2026. While this investment signals confidence in future growth, the company’s operating income forecast fell short of expectations, prompting investor concern.
The broader market sentiment shifted towards risk-on, extending beyond stocks and into the cryptocurrency space. This suggests a renewed appetite for assets that had previously been under pressure, as investors reassess their portfolios and look for opportunities in a volatile market.
The day’s gains represent a notable shift from , when Wall Street closed sharply lower, with the Nasdaq Composite dropping 1.6%, the S&P 500 falling 1.2%, and the Dow Jones Industrial Average shedding over 500 points.
