WASHINGTON (dpa-AFX) - Stocks have moved mostly higher during trading on Friday, regaining ground after coming under pressure over the course of the previous session. The major averages have all moved to the upside on the day.
In recent trading, the Dow and S&P 500 have reached new highs for the session. The Dow is up 231.77 points or 0.5 percent at 51,463.41, the S&P 500 is up 36.07 points or 0.5 percent at 7,801.43 and the Nasdaq is up 152.02 points or 0.6 percent at 27,345.36.
The rebound on Wall Street comes as traders remain optimistic about the outlook for the artificial intelligence trade even after reports OpenAI's annualized revenue came in below estimates.
A report from CNBC said a person familiar with the matter said the higher revenue figure that was widely reported late last month included gross revenue from OpenAI's partners.
Exceptionally strong corporate earnings expectations may also be contributing to the renewed buying interest ahead of the release of key earnings news next week.
Financial giants Citigroup (C), JPMorgan Chase (JPM), Wells Fargo (WFC) and Bank of America (BAC) are among the companies due to report their quarterly results next week along with healthcare giants Johnson & Johnson (JNJ) and UnitedHealth (UNH).
The strength of the companies' quarterly results as well as their guidance could have a significant impact on the outlook for the markets as earnings season picks up steam.
Next week will also see the release of reports on consumer and producer price inflation that could impact expectations for the Federal Reserve's next monetary policy meeting later this month.
CME Group's FedWatch Tool is currently indicating an 80.6 percent chance the Fed will live interest rates unchanged after last month's quarter point rate hike.
'Strong earnings combined with moderating inflation would offer the most supportive backdrop for equities,' said Daniela Hathorn, Senior Market Analyst at Capital.com.
She added, 'Conversely, persistent price pressures alongside disappointing corporate guidance could expose the vulnerability of a market increasingly dependent on a relatively small group of technology companies to sustain its rally.'
Sector News
Gold stocks are moving sharply higher along with the price of the precious metal, driving the NYSE Arca Gold Bugs Index up by 2.3 percent. The index continues to regain ground after hitting a two-month closing low on Wednesday.
Software and networking stocks are also seeing considerable strength, with the Dow Jones U.S. Software Index and the NYSE Arca Networking Index both jumping by 2 percent.
Retail and commercial real estate stocks have also moved to the upside on the day, while substantial weakness is visible among telecommunications stocks.
The NYSE Arca North American Telecom Index is plunging by 3.3 percent after SpaceX (SPCX) announced an agreement to acquire a nationwide low-band spectrum license portfolio, raising concerns about increase competition.
Airline stocks are also under pressure, dragging the NYSE Arca Airline Index down by 1.8 percent, after Delta Air Lines (DAL) reported weaker than expected third quarter earnings and cut its full-year outlook.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Friday. Hong Kong's Hang Seng Index jumped by 1.8 percent and Australia's S&P/ASX 200 Index climbed by 0.6 percent, although Japan's Nikkei 225 Index edged slightly lower.
The major European markets have also shown strong moves to the upside on the day. While the German DAX Index is up by 1.2 percent, the U.K.'s FTSE 100 Index is up by 1.1 percent and the French CAC 40 Index is up by 1 percent.
In the bond market, treasuries are giving back ground following the significant rebound seen over the course of the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, has risen 4.3 basis points to 5.276 percent.
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