U.S. Stock markets rebounded sharply on , driven by a recovery in technology stocks and a stabilization in the cryptocurrency market. The Dow Jones Industrial Average surpassed the mark for the first time, closing at , a gain of points, or .
The S&P 500 also posted significant gains, rising to close at , returning to positive territory for . The Nasdaq Composite advanced , finishing the day at . Despite the strong performance, both the S&P 500 and Nasdaq are still on track for weekly declines, down and almost respectively, while the Dow is up for the week.
The rally was fueled by a resurgence in key technology stocks. Nvidia and Broadcom led the gains, increasing by and respectively, after experiencing substantial declines earlier in the week. Oracle and Palantir Technologies also contributed to the positive momentum, each rising . However, some software stocks, including ServiceNow, remained weak, reflecting ongoing concerns about disruption from artificial intelligence.
The market’s recovery coincides with significant investment announcements from major tech companies. Amazon announced plans to invest approximately in areas like AI, chips, robotics, and low earth orbit satellites, following a similar announcement from Alphabet. While these investments signal confidence in future growth, they also raise questions about profitability, contributing to a drop in Amazon’s stock price on .
Concerns about the potential impact of AI on software companies have weighed on the market throughout the week. The release of free AI-powered tools by Anthropic, capable of automating tasks like legal services, has intensified these anxieties.
Bitcoin experienced a notable rebound, climbing back above after a weeks-long decline that saw its price fall to around . This stabilization provided a boost to companies involved in the cryptocurrency economy, with Robinhood Markets jumping , Coinbase Global rising , and Strategy, a bitcoin-holding company, soaring .
The rally extended beyond technology and cryptocurrency, with smaller U.S. Companies and those reliant on consumer spending also performing well. A preliminary report from the University of Michigan indicated a slight improvement in consumer sentiment, contrary to expectations of a decline. This improvement was particularly pronounced among households that own stocks.
Airline stocks benefited from the improved consumer sentiment, with United Airlines, Delta Air Lines, and American Airlines gaining , , and respectively. The Russell 2000 index, which tracks smaller companies, jumped , outperforming the S&P 500.
International markets also saw gains, with indexes rising across much of Europe. However, Stellantis, the automotive giant, experienced a decline after announcing a () charge related to scaling back its electric vehicle production plans, acknowledging an overestimation of the pace of the energy transition.
In Asia, Japan’s Nikkei 225 rose , boosted by a increase in Toyota Motor shares following the announcement of a change in leadership, with Koji Sato stepping down as CEO in and being replaced by the company’s chief financial officer, Kenta Kon.
The bond market remained relatively stable, with the yield on the Treasury holding steady at .
The market’s recovery on , represents a significant shift in sentiment following a period of volatility, driven by concerns about technology valuations, the impact of AI, and the broader economic outlook. While challenges remain, the day’s gains suggest a renewed appetite for risk and a belief in the potential for continued growth, particularly in the technology sector.
