Wall St edges up as AI enthusiasm eases worries over higher oil prices, yields
Wall Street’s main indexes inched higher on Friday as AI optimism buoyed sentiment despite elevated oil prices and rising Treasury yields, while investors watched efforts to secure a deal to end the Middle East conflict. Microsoft shares rose 3% and were the biggest boost to the S&P 500 after the software giant unveiled several new capabilities in its Copilot app, including a coding tool and an…
On Friday, Wall Street's major indexes saw a modest rise as AI optimism tempered concerns over high oil prices and increasing Treasury yields. Microsoft led the S&P 500 with a 3% gain after unveiling new features for its Copilot app, including a coding tool and an always-on AI agent. Micron and Marvell Technology saw gains of around 1%, while Nvidia also edged higher.
AI-related optimism was a significant driver this week, driven by Meta's Muse and its Charm device gaining popularity among young consumers. Analysts noted the substantial investment in AI, anticipating increased productivity and boosting stock valuations. The Dow Jones Industrial Average climbed 226.73 points (0.44%) to 51,576.71, the S&P 500 rose 22.49 points (0.29%) to 7,726.62, and the Nasdaq Composite increased 109.38 points (0.41%) to 27,048.75.
Eight of the 11 S&P 500 sectors closed lower, but technology, the week's top-performing sector, rose by 1%. Market optimism was tempered by inflation concerns stemming from ongoing conflicts in Iran and Ukraine and record-high government debt. Brent crude prices exceeded $100 per barrel, and the 10-year Treasury yield stood at 5.1%.
Traders now estimate a 64% probability of a Federal Reserve interest rate increase of at least 25 basis points in October, up from around 50% earlier in the week. As the US-China summit approached, President Donald Trump announced a productive meeting with President Xi Jinping, emphasizing that Chinese support for Iran was unacceptable.
Akamai Technologies surged 8% following a $11.6 billion cloud services deal with AI leader Anthropic, while people jumped 8% after news of MGM Resorts International potentially bidding for the online services company. Advancing stocks outnumbered declining ones on both the New York Stock Exchange and Nasdaq, with the S&P 500 setting three new 52-week highs and 27 new lows, and the Nasdaq Composite recording 24 new highs and 80 new lows.
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