Nasdaq rises tech shares as software stocks lead rebound
The Nasdaq Composite rose 0.64% to close at 27,366.17 as technology stocks recovered after a sharp decline. Software shares led gains, while SpaceX advanced…
Technology shares helped the Nasdaq Composite recover on Friday, with the index rising 0.64% to close at 27,366.17 after a sell-off the previous day. The rebound came as traders weighed a volatile week marked by higher Treasury yields, elevated oil prices and pressure on artificial intelligence-linked stocks.
The gains extended across major U.S. indexes. The S&P 500 climbed 0.59% to 7,811.54, while the Dow Jones Industrial Average added 423.31 points, or 0.83%, to finish at 51,654.95, according to CNBC.
Software shares set the pace. Palo Alto Networks gained 5%, while CrowdStrike and Palantir Technologies each advanced, with gains of 4% and 5%, respectively. Microsoft rose 2%, and Amazon added 3%.
Investors were still assessing the sharp reversal in technology stocks. The Nasdaq fell more than 1% on Thursday, its largest one-day loss since mid-August, after the index had reached fresh all-time records earlier in the week. Thursday was its second consecutive declining session.
That volatility matters beyond the technology sector: movements in the major indexes shape how investors assess broad market conditions, while the week’s focus on oil and borrowing costs keeps pressure points in view. The market’s gains arrived even as traders considered whether the recent AI-related losses could continue.
There was a short-term rebound.
Adam Crisafulli of Vital Knowledge cautioned against assuming the decline had run its course. “The sell-off reflected extreme positioning imbalances that have further to unwind in our view, which is why the whole AI-linked tech stock complex is unlikely to simply stage a sharp, V-shaped rebound,” he wrote.
He argued that investor concerns about artificial intelligence companies extend beyond how revenue is reported. Crisafulli pointed to the business prospects of standalone frontier labs and signs that markets are resisting the volume of debt and equity financing directed toward AI-linked companies.
CNBC reported that OpenAI told investors it had $50 billion in annualized revenue at the end of September. A $68 billion figure had been widely reported last month, but a person familiar with the matter said that figure also included gross revenue from partners.
Oil and company updates shape the next move
Stocks reached their highs of the day after President Donald Trump said Russian President Vladimir Putin had agreed to supply diesel to the U.S. and global markets. Oil futures finished marginally higher: West Texas Intermediate was near $92 per barrel and Brent was above $104. Prices moved slightly lower after the announcement, CNBC reported.
SpaceX shares rose 1% after the company announced a deal to buy a nationwide spectrum portfolio. AT&T, Verizon and T-Mobile shares fell as investors considered whether the agreement could intensify competition.
Healthcare shares also advanced. Merck and Gilead Sciences each gained more than 2%, while Moderna rose on optimism surrounding reported National Institutes of Health cancer vaccine efforts.
Despite the week’s volatility, all three leading indexes were heading for a positive five-day period. The Nasdaq was up 0.6% for the period, the Dow had gained 0.9%, and the S&P 500 was up around 1.2%, according to CNBC.
Investors are turning to company results next week, when earnings season accelerates. Banks are set to report, alongside Johnson & Johnson and UnitedHealth. Those two companies are scheduled to report on Tuesday, along with Wells Fargo and Citigroup.
Michael Monaghan of Founder ETFs told CNBC he was constructive on equities through year-end because of expected company growth, while warning that the Middle East conflict and its effect on oil could weigh on markets. He said the conflict was “one thing holding this market back from really reflecting how powerful the near-term earnings story is.”
Source: cnbc.com
