WASHINGTON (dpa-AFX) - After coming under pressure over the course of the previous session, stocks showed a notable move back to the upside on the day. The major averages all finished the day firmly in positive territory.
The Dow advanced 423.31 points or 0.8 percent to 51,654.95, the Nasdaq climbed 172.83 points or 0.6 percent to 27,366.17 and the S&P 500 rose 46.18 points or 0.6 percent to 7,811.54.
For the week, the S&P 500 shot up by 1.2 percent, the Dow jumped by 0.9 percent and the Nasdaq increased by 0.6 percent.
The rebound on Wall Street came 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 have contributed 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 82.8 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 moved sharply higher along with the price of the precious metal, driving the NYSE Arca Gold Bugs Index up by 2.9 percent. The index continued to regain ground after hitting a two-month closing low on Wednesday.
Software and networking stocks also saw substantial strength, with the Dow Jones U.S. Software Index and the NYSE Arca Networking Index both surging by 2.7 percent.
Biotechnology, healthcare and commercial real estate stocks also showed strong moves to the upside on the day, while substantial weakness was visible among telecommunications stocks.
The NYSE Arca North American Telecom Index plunged by 4 percent after SpaceX (SPCX) announced an agreement to acquire a nationwide low-band spectrum license portfolio, raising concerns about increase competition.
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 also showed strong moves to the upside on the day. While the French CAC 40 Index jumped by 1 percent, the U.K.'s FTSE 100 Index and the German DAX Index both shot up by 1.1 percent.
In the bond market, treasuries have regained ground after an early slump but remain modestly lower. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, has risen by 1.5 basis points to 5.248 percent after reaching a high of 5.280 percent.
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