U.S. stocks experienced a notable uptick on Friday, signaling a potential rebound after a week marked by significant turmoil within the tech sector. Notably, as Wall Street recalibrated its concerns regarding the ramifications of artificial intelligence disruption and rising expenditures by major technology firms, the S&P 500 rose by 0.5%. The Nasdaq Composite followed closely with an increase of approximately 0.4%, while the Dow Jones Industrial Average saw an impressive gain of 0.8%. These fluctuations came as the markets responded to sharp losses that characterized earlier trading sessions.
Despite the positive movements at the end of the week, both the S&P 500 and NASDAQ remained poised to finish in a downward trajectory for the week, with both indices entering negative territory for 2026. The overall atmosphere on Wall Street reflected a cautious optimism as leaders from significant tech corporations and analysts began to diminish fears surrounding the influence of emerging AI technologies on traditional tech operations.
In a parallel development, Bitcoin prices managed to climb back above $68,000 after reaching a 16-month low earlier in the week. This rise, however, comes amidst a broader context of pessimism for the cryptocurrency, which is on course for its worst weekly performance since 2022, losing all gains accrued following the Trump election.
Among the companies touching the crypto sphere, Strategy (MSTR) faced challenges due to its exposure to Bitcoin volatility. Following its quarterly loss report, the company’s shares surged by more than 13% on Friday after the revival of Bitcoin prices and reframing of debt concerns by its CEO. Conversely, Amazon (AMZN) shares dropped almost 9% following an earnings report that suggested plans for a monumental increase in expenditures — forecasting at least $200 billion in spending for 2026 — despite a disappointing operating income outlook.
In the automotive sector, Stellantis (STLA), the maker of Jeep, warned investors of a significant €22.2 billion ($26 billion) charge related to its electric vehicle initiatives. This announcement triggered a sharp decline of over 20% in its stock prices in both U.S. and Milan markets, adding to an already turbulent narrative surrounding electric vehicle investments, amplified by a substantial loss recorded by Chinese manufacturer BYD earlier in the week.
In the commodities arena, silver prices experienced fluctuations but predominantly resumed their decline, driven by ongoing selling pressures from China ahead of an approaching national holiday.
Looking ahead, market participants are keenly awaiting the January jobs report, which was rescheduled for Wednesday. Recent data has indicated emerging weaknesses in the job market, with job openings dropping to their lowest point since 2020 and a marked increase in layoff announcements.
In company-specific movements, Hims & Hers Health (HIMS) faced a substantial drop of about 7% after a recent announcement of a new compounded weight-loss pill, which spurred regulatory scrutiny from the FDA. Conversely, shares of Novo Nordisk (NVO) rose by 7% following the FDA’s announcement, which indicated a crackdown on copycat drugs, allowing it to overshadow concerns stemming from its competitor’s new entry into the market.
Molina Healthcare (MOH) stocks tumbled 28% premarket due to a bleak profit forecast for 2026, and Doximity (DOCS) fell 30% after warning about lower expected sales for the fiscal year. In contrast, stocks for Reddit (RDDT) jumped 7% as the platform posted strong fourth-quarter results and optimistic guidance, benefitting from enhanced marketing strategies attributed to AI integration.
As the markets continue to navigate these volatile conditions, analysts will be watching closely to understand the impact of both macroeconomic trends and company-specific developments on investor sentiment moving forward.
