NEW YORK — U.S. stocks finished a volatile week higher, with renewed enthusiasm around artificial intelligence helping offset concerns over rising Treasury yields, elevated oil prices and the prospect of additional Federal Reserve interest-rate increases.
The S&P 500 gained 1.2% for the week, while the technology-heavy Nasdaq Composite rose 2%, including record-high closes earlier in the week. The Dow Jones Industrial Average finished Friday at 51,828.62.
Stocks ended the week on a positive note Friday. The Dow rose 0.9%, the S&P 500 gained 0.5% and the Nasdaq advanced 0.5%.
Technology shares were among the market’s strongest performers. Microsoft climbed 3.7% Friday after unveiling new artificial-intelligence features for its Copilot platform, while Qualcomm and Dell also posted gains. Meta Platforms remained sharply higher for the week despite declining Friday.
The week began with a strong rally after oil prices fell and investors returned to AI-related stocks. The Nasdaq reached a record close Monday and set another record Tuesday as semiconductor and technology shares advanced.
Those gains were tested later in the week as Treasury yields climbed sharply. The yield on the benchmark 10-year Treasury moved above 5% and reached its highest level in 19 years Friday, increasing competition for stocks and raising concerns about borrowing costs across the economy.
Oil also remained a source of uncertainty. Brent crude ended the week above $100 a barrel as investors monitored developments involving the U.S.-Iran conflict and their potential effect on global energy supplies and inflation.
The Federal Reserve raised its benchmark interest rate by a quarter percentage point earlier this month, its first increase in more than three years. Investors increasingly expect another increase, with futures markets Friday indicating roughly a two-thirds probability of at least a quarter-point hike at the Fed’s October meeting.
Despite the major indexes holding near record levels, the rally has become increasingly concentrated. Eight of the S&P 500’s 11 sectors were down for September through Friday, while an equal-weighted version of the index had fallen about 4% for the month. Technology shares, particularly companies tied to artificial intelligence, have helped keep the broader capitalization-weighted indexes elevated.
Investors will turn their attention next week to inflation and employment data that could shape the Fed’s next move. The personal-consumption expenditures price index, the central bank’s preferred inflation gauge, is due Wednesday, followed by the September employment report Oct. 2.
Economists surveyed by Reuters expect the economy added about 100,000 jobs in September and the unemployment rate remained at 4.2%.
By: DNU Newswire