S&P 500, Dow, Nasdaq today: On Friday, U.S. stock markets experienced an upswing, buoyed by a resurgence of investor enthusiasm in the artificial intelligence sector. Oracle was notably at the forefront of this recovery, propelled by a significant agreement concerning TikTok.
U.S. Stock Market Summary: S&P 500, Dow, and Nasdaq Climb
The Nasdaq Composite advanced 1.31%, concluding the day at 23,307.62, while the S&P 500 rose 0.88%, finishing at 6,834.50. The Dow Jones Industrial Average saw an increase of 183.04 points, or 0.38%, closing at 48,134.89. This represented a second consecutive day of gains across all three principal indexes.
Oracle’s Stock Surge Linked to TikTok Agreement
Oracle’s shares soared by 6.6% following TikTok’s announcement to divest its U.S. operations to a new joint venture that includes Oracle and the private equity firm Silver Lake, according to a CNBC report.
Earlier this week, apprehension had clouded Oracle’s stock when it lost a pivotal partner for one of its data center undertakings, raising concerns about its debt obligations and its investments in AI technology. This negativity had also cast a shadow on other AI-related stocks, such as Broadcom and Advanced Micro Devices.
Nvidia Sees Stock Increase Amid Potential AI Chip Exports
Nvidia, another prominent player in the AI landscape, recorded a stock increase of approximately 4% following reports that the Trump administration is contemplating permitting the company to export its advanced AI chips to China.
Earlier this month, President Trump remarked that Nvidia could ship its H200 AI chips to “approved customers” in that nation.
Micron’s Stock Rally Continues
Micron Technology maintained its upward trajectory, appreciating by around 7% after providing a robust revenue forecast for the upcoming quarter. The stock had previously surged by 10% on Thursday, alleviating investor anxieties stemming from recent fluctuations in AI-related equities.
Market Outlook: Investor Confidence in AI Sector Fuels Optimism for 2026
Tom Garretson, senior portfolio strategist at RBC Wealth Management, commented, “The deluge of issuances from hyperscalers and AI-related investments might exert downward pressure on markets as we approach 2026,” while acknowledging, “These firms are among the highest-rated in terms of credit quality. They possess the capacity to expand their debt to fund these initiatives.”
He also noted that “We still anticipate that capital expenditures will play a key role in supporting a more robust growth trajectory,” as per his statements quoted by CNBC.
Stock Market Gains in the Wake of Previous Sessions’ Rebound: Performance Highlights for Nasdaq, S&P 500, and Dow
The gains observed on Friday followed a resurgence in the preceding session, wherein both the S&P 500 and Dow managed to break four consecutive days of losses. As a result of Friday’s movements, the S&P recorded a slight gain of 0.1% over two days, while the Nasdaq climbed by 0.5%, though the Dow experienced a decline of 0.7%.
Nike’s Stock Declines Due to Weak China Revenue and Tariff Issues
Conversely, not all enterprises participated in the rally. Nike’s shares plummeted by 10.5% after reporting diminished revenues in its Greater China market during the fiscal second quarter. The athletic apparel titan attributed the downturn to tariff increases negatively impacting its gross margins.
FAQs
What prompted the rise in U.S. stocks on Friday?
The uptick in stocks can be credited to rekindled investor confidence in the AI sector, particularly following Oracle’s agreement with TikTok.
What led to the surge in Oracle’s shares?
Oracle’s stock price surged by 6.6% following TikTok’s decision to transfer its U.S. operations to a joint venture involving Oracle.
Source link: M.economictimes.com.
