Nasdaq Composite Sees Notable Gains Amid AI Revival
The Nasdaq Composite ascended once more on Friday, marking a continuation of its recovery phase as investors reallocated funds into artificial intelligence and large-cap technology stocks following a tumultuous week.
The tech-centric index surged by approximately 1%, accruing nearly 246 points to settle near 23,252 by midday, according to real-time market analytics.
This upswing paralleled robust overall market performance, with the S&P 500 increasing by nearly 0.8% and the Dow Jones Industrial Average advancing by around 290 points.
Friday’s rally embodies a resurgence of investor confidence regarding the AI sector, following earlier declines provoked by concerns about valuations and funding for data centers.
Encouraging corporate narratives, enhanced risk appetite, and strategic positioning in anticipation of a significant options expiration contributed to the positive sentiment.
Notable players in the technology sphere, including Nvidia, Oracle, and Micron, alongside several mid-cap AI-related firms, recorded substantial gains, thereby stabilizing a sector that has significantly influenced market trends this year.
Drivers Behind Nasdaq’s Gain
The Nasdaq’s upward trajectory was chiefly propped up by a marked rebound in AI-centric equities. Nvidia experienced a rise exceeding 3% after reports emerged that the Trump administration is contemplating approvals for the firm’s sale of sophisticated AI chips to China.
Earlier this month, President Donald Trump confirmed that Nvidia would be permitted to deliver its H200 chips to select Chinese clients, thereby alleviating regulatory anxieties.
Micron Technology continued its upward momentum, soaring over 7% following a prior surge of 10% the previous day. The chip giant provided optimistic forward guidance, stating that demand far exceeds supply in the foreseeable future, reassuring investors concerned about a potential deceleration in AI growth.
Oracle’s Share Price Soars After TikTok Agreement
Oracle stocks skyrocketed by more than 7% following revelations that TikTok is set to divest its United States operations to a newly formed joint venture, involving Oracle and private equity firm Silver Lake.
This development arrives as a significant turnaround for Oracle, which has faced pressure after news broke of a crucial backer withdrawing from a major data center initiative.
Despite Friday’s rebound, Oracle remains down over 45% from its peak in September and has experienced declines exceeding 30% year to date. Nevertheless, analysts assert that the broader AI narrative remains resilient, highlighting sustained long-term demand for cloud and infrastructure services.
Top Gainers of the Day
- Nvidia: Rose over 3% amidst renewed enthusiasm for AI chip stocks and alleviated export apprehensions.
- Infosys: Jumped more than 8% following fresh buying interest within global IT services.
- BigBear.ai: Climbed nearly 10% as speculative AI investments gained traction.
- Ondas Holdings: Surged over 14% on significant trading activity and momentum buying.
- Rivian: Advanced over 9% as electric vehicle stocks rebounded alongside broader market optimism.
- Trump Media: Gained about 9% amid increased retail trading volume.
- Carnival: Climbed nearly 9% as travel and leisure stocks strengthened.
Top Losers of the Day
- Nike: Fell almost 10% after revealing disappointing revenue from its Greater China segment and facing margin pressures due to tariffs.
- Tesla: Slipped around 1.5% as profit-booking followed a recent rally.
- Plug Power: Declined over 3% due to ongoing concerns regarding funding and cash burn rates.
Impending Volatility from Quadruple Witching
Friday’s trading session coincided with the phenomenon known as “quadruple witching,” wherein options on stocks, indexes, futures, and ETFs expire simultaneously.
More than $7.1 trillion in notional options exposure is slated to expire, marking it as the largest event of its kind recorded by Goldman Sachs. Such expirations typically amplify intra-day price fluctuations and trading volumes.
This rally follows a notable rebound on Thursday, when both the S&P 500 and Dow managed to break four-day losing streaks. For the week thus far, the Nasdaq remains modestly elevated, while the Dow shows slight declines.
Nike Faces Challenges Amid Consumer Sentiment Data
Not all equities shared in the rally’s benefits. Nike’s shares plummeted over 9% following the disclosure of decreased revenue within its Greater China operations, coupled with warnings about margin pressures linked to tariffs.
Furthermore, consumer sentiment indices deviated from expectations, with the University of Michigan’s December figure landing at 52.9, slightly below forecasts of 53.5, illuminating ongoing worries regarding consumer spending trends.
Source link: M.economictimes.com.
