NYSE Rises as Technology Stocks Rebound
The Dow Jones Industrial Average surged by 2.47%, gaining 1,206.95 points to settle at 50,115.67. The Nasdaq Composite climbed 2.18%, adding 490.63 points to close at 23,031.21, while the S&P 500 advanced 1.97%, rising 133.9 points to 6,932.30.
Market anxiety eased noticeably, with the Volatility Index (VIX), often referred to as the “fear index,” plunging 18.42% to 17.76.
After days of heavy selling pressure on technology stocks, equities staged a comeback at the end of the week. Earlier declines were fueled by worries over whether massive investments in artificial intelligence would weigh on corporate profits, along with signals that the US labor market may be losing momentum.
Investor attention throughout the week centered on corporate earnings reports, particularly how escalating AI-related costs are affecting company balance sheets.
Amazon shares fell sharply after the company reported fourth-quarter net sales above expectations but missed profit forecasts and increased its projected spending for 2026 to $200 billion. The e-commerce giant’s capital expenditures reached $131 billion in 2025. As competition in AI intensifies, Amazon joined other major technology firms, including Alphabet, in outlining plans for significantly higher investment.
Chipmakers benefited from expectations that rising AI expenditures by large technology companies would boost demand for semiconductors. Nvidia shares jumped 7.9%, AMD gained 8.3%, and Broadcom rose 7.1%.
Software stocks, which had struggled earlier in the week amid concerns that rapidly advancing AI tools could curb demand for certain services, also rebounded. Oracle shares climbed 4.7%, while CrowdStrike advanced 4.9%.
On the economic data side, consumer sentiment showed improvement. The University of Michigan’s consumer confidence index increased to 57.3 in February, beating forecasts. Additional data released ahead of next week’s US inflation report indicated that short-term inflation expectations declined from 4% in January to 3.5%, marking the lowest level since January 2025.
Meanwhile, long-term inflation expectations edged up for a second straight month, rising from 3.3% to 3.4%.
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