US stocks ended the day higher on Friday, despite a jump in US Treasury yields that impacted financial markets. The S&P 500 rose 0.4%, while the Nasdaq Composite gained 0.5%. The Dow Jones Industrial Average advanced 368 points, or 0.7%. Akamai Technologies was among the top gainers, with its shares rising 5% after announcing a multi-year agreement with Anthropic.
The agreement between Akamai Technologies and Anthropic contributed to improved market sentiment. Additionally, oil prices declined, fueled by optimism about the potential reopening of the Strait of Hormuz. Iran requested that the US return to a memorandum of understanding from June that failed to resolve the conflict in the Middle East. West Texas Intermediate crude fell 2% to around $92 per barrel, while Brent crude, the global benchmark, dropped 2% to approximately $104 per barrel.
The weekly performance of major indices is mixed, with the Dow Jones heading for a 0.1% gain, while the S&P 500 is on track for a 1% increase. The Nasdaq Composite has risen 2% since the start of the week. The technology sector has driven gains, led by companies like Meta Platforms, whose shares have surged over 12% this week amid enthusiasm for its AI tool, Muse.
The information technology sector within the S&P 500 has risen 3%, making it the top-performing sector. This rally is significant, as it marks a notable rebound for the sector. The strong performance of tech stocks has helped offset concerns about rising Treasury yields and their potential impact on the market.
Market participants are closely watching the developments in the Middle East, as they assess the potential impact on oil prices and global economic growth. The request from Iran for the US to return to the memorandum of understanding has raised hopes for a de-escalation of tensions. However, the situation remains uncertain, and investors are advised to remain cautious.
The S&P 500's gain on Friday was broad-based, with most sectors ending the day higher. The index's performance was led by the technology and communication services sectors. The market's resilience in the face of rising Treasury yields and geopolitical tensions has been notable, but it remains to be seen whether this momentum can be sustained.
As the week comes to a close, investors are preparing for a potentially volatile week ahead. The economic calendar is relatively light, but developments in the Middle East and US monetary policy will be closely watched. The strong performance of tech stocks and the resilience of the market have raised hopes for a sustained recovery, but caution is still advised.
Key points
- The S&P 500 rose 0.4% on Friday, driven by gains in the technology sector.
- Oil prices declined, with West Texas Intermediate crude falling 2% to around $92 per barrel.
- The information technology sector within the S&P 500 has risen 3%, making it the top-performing sector.
