U.S. stock indices posted gains Friday as a surge in technology shares propelled markets higher, fueled by robust earnings from key tech firms and shifting expectations around Federal Reserve policy. The Nasdaq Composite rose 2.3%, outperforming the S&P 500’s 1.7% advance.
- Nasdaq Composite up 2.3% to 18,472, its strongest close since September 2024
- NVIDIA Corp. surged 5.6% on strong AI revenue guidance
- S&P 500 advanced 1.7% to 5,392, led by a 3.1% gain in the tech sector
- AMD reported 12% YoY revenue growth and unveiled new AI chip timeline
- 10-year Treasury yield declined to 3.84% amid shifting Fed rate-cut expectations
- CBOE VIX fell to 14.8, signaling lower market volatility
A renewed wave of investor confidence in the technology sector lifted major U.S. benchmarks, with the Nasdaq Composite closing at 18,472, marking its highest level since September 2024. The rally was led by a broad-based advance across large-cap tech stocks, including NVIDIA Corp., which gained 5.6% following stronger-than-expected revenue guidance for its AI-driven data center segment. Alphabet Inc. and Meta Platforms Inc. also rose more than 4% each after reporting quarterly results that exceeded analyst estimates on ad revenue and cloud growth. The S&P 500 climbed 1.7% to 5,392, driven primarily by a 3.1% jump in the information technology sector. This momentum followed a series of earnings reports from top semiconductor companies, with AMD Inc. reporting a 12% year-over-year increase in revenue and announcing a new AI chip roadmap expected to launch in Q3 2026. These results reinforced market sentiment that demand for high-performance computing infrastructure remains resilient despite macroeconomic headwinds. Investors reacted positively to revised projections from the Federal Reserve’s latest economic summary, which hinted at potential rate cuts as early as June 2026 if inflation trends continue to moderate. The benchmark 10-year Treasury yield dropped to 3.84%, down from 4.01% earlier in the week, reflecting decreased expectations for prolonged high interest rates. This shift boosted equity valuations, particularly in growth-oriented sectors like technology and biotech. Market participants noted increased activity in options trading around tech stocks, signaling elevated optimism ahead of upcoming earnings season. The CBOE Volatility Index (VIX) settled at 14.8, near its lowest level since November, indicating reduced fear among investors. The broader market breadth also improved, with 78% of S&P 500 components finishing in positive territory.