Wall Street's Tech-Powered Rally: A Closer Look

Wall Street saw a boost on Friday, marking the second day of gains after some shaky starts earlier in the week. Tech stocks, especially those in the artificial intelligence sector, were the stars of the show. The S&P 500 and Nasdaq both ended the week on a high note, despite some rough patches. The S&P 500 climbed up by 59. 74 points, or 0. 9%, landing at 6, 834. 50. It managed a small 0. 1% gain for the week. The Dow Jones Industrial Average also saw a rise, adding 183. 04 points, or 0. 4%, to reach 48, 134. 89. But the real mover was the Nasdaq, which jumped by 301. 26 points, or 1. 3%, to 23, 307. 62, securing a 0. 5% weekly gain. Nvidia was a major player in this rally, with a 3. 9% increase. Broadcom also saw a significant rise of 3. 2%. Tech stocks have been driving Wall Street all year, but their high values are now under scrutiny. Investors are questioning if these prices are justified. Oracle made a notable move, rising by 6. 6% after announcing a new joint venture with TikTok in the U. S. Oracle, along with Silver Lake and MGX, each secured a 15% share in the popular social video platform. This deal ensures TikTok can continue operating in the U. S.Company earnings and performance in the face of tariffs and inflation were key focuses. Nike, for instance, saw a 10. 5% drop despite a strong quarterly profit report, as tariffs took a toll. Lamb Weston, a frozen potato maker, fell by 25. 9% even after beating profit and revenue forecasts. On the other hand, Winnebago Industries jumped by 8. 4% after exceeding analysts' estimates for its latest quarter. Homebuilders took a hit following a report showing a slowdown in home sales for the first time since May. KB Home fell by 8. 5%. Meanwhile, a survey from the University of Michigan showed a slight improvement in consumer sentiment in December compared to November, but it's still much lower than a year ago. Consumer confidence has been on a decline throughout the year due to persistent inflation, a slowing job market, and weakening retail sales. Businesses and consumers are also worried about the ongoing U. S. -led trade war, which has affected key partners like China and Canada. The latest inflation update on Thursday showed a surprise cooling of prices in November, with the consumer price index rising by 2. 7%. However, economists warned that these numbers might be off due to delays and distortions caused by the 43-day federal shutdown. Mark Hackett, chief market strategist at Nationwide, noted that the recent economic data did little to clarify the market's direction, keeping it in a trading range since September.