On Friday, U.S. stock markets achieved new heights amid a record-setting rally, buoyed by encouraging developments in trade talks between the U.S. and China and continued gains in the tech sector, particularly among the so-called “Magnificent Seven” tech stocks.
The Dow Jones Industrial Average rose by 0.4%, while the S&P 500 saw an increase of nearly 0.5%. The Nasdaq Composite, characterized by its tech focus, led the market with a 0.7% gain, largely propelled by a surge in Apple shares. This rise in Apple’s stock came alongside excitement over the launch of its new iPhones, which hit store shelves recently.
All three major indices achieved all-time highs for the second consecutive day, wrapping up the week on a positive note. As the market reacted to the Federal Reserve’s reintroduction of interest rate cuts, the S&P 500 and Nasdaq recorded their third consecutive weekly gains, with respective increases of 1.2% and 2.2%. The Dow also climbed by 1%, marking its second straight week of growth.
Interest at the end of the week was particularly directed toward details of discussions between U.S. President Donald Trump and Chinese President Xi Jinping. Trump announced via Truth Social that the call was productive, addressing important issues including trade, the opioid crisis, the ongoing Russia-Ukraine conflict, and a potential resolution related to TikTok. Despite the optimism, specific details regarding the anticipated TikTok deal—a prospective arrangement that would allow the app, owned by Chinese company ByteDance, to sustain operations in the U.S. during ban discussions—remained unclear.
Reports suggested that a consortium involving Oracle, Silver Lake, and Andreessen Horowitz would be taking an 80% stake in TikTok, but China’s state media provided limited details, focusing instead on a general commitment to find a commercial solution and avoiding new restrictive trade measures.
In the broader market landscape, shares of nuclear firms such as Oklo and NANO Nuclear surged amid positive sentiment towards the sector. Conversely, chipmaker Micron retreated from its record highs ahead of an impending earnings report, while Broadcom, a key player in the AI chipmaker realm, saw a decline of around 4% after its recent upswing.
Separately, Apple experienced a substantial jump of nearly 3% in its stock value following the launch of its latest iPhone models. Early indications from Bank of America and Chinese retail platform JD.com suggested strong initial demand. Despite being considered a laggard among tech giants, Apple continued to be a topic of investor interest, especially with aspirations of moving beyond its previous all-time high.
In the initial public offerings arena, Pattern Group made its debut on the Nasdaq under the ticker PTRN, opening at $13.50, slightly below its IPO price. The company raised $300 million in its stock offering. CEO Dave Wright noted that being publicly traded would enhance the company’s competitiveness in the AI space.
Despite some stocks performing well, Micron’s shares experienced a drop of over 3% as investors awaited its quarterly earnings report. Analysts remain optimistic about Micron due to its engagement in the AI market, with expectations of strong earnings on the horizon.
Other notable shifts included CoreWeave shares jumping nearly 4% following an upgrade to a Buy rating from Loop Capital, reflecting confidence in the company’s role in the cloud and AI market. At the same time, Intel faced downgrades from Citi as analysts expressed skepticism over the impact of a newly announced partnership with Nvidia.
Investors also exhibited interest in housing stocks and credit card companies, with expectations that the Fed’s interest rate cuts would bolster these sectors. As conversations around tariffs continued to unfold, market sentiment remained cautiously optimistic with the hope for sustained growth despite geopolitical uncertainties.
As trading concluded, gold prices fell for a third day, affected by market dynamics following the Fed’s rate cut, signaling a shift in demand for traditional safe-haven assets.
