US stocks rose on Friday as technology shares rebounded from a sell-off earlier in the week, helping Wall Street recover amid elevated Treasury yields, volatile oil prices, and concerns about artificial intelligence valuations.
The Dow Jones Industrial Average gained 423 points, while investors looked ahead to third-quarter earnings and upcoming inflation data.
The Dow rose 0.8% to 51,661.54, while the S&P 500 gained 0.6% to 7,811.71. The Nasdaq Composite advanced 0.64% to 27,365.00.
All three major indexes recorded weekly gains, with the S&P 500 rising around 1% over the period.
Technology stocks rebound after AI-related sell-off
Technology shares led Friday’s gains, recovering some of the losses recorded on Thursday after concerns about OpenAI’s reported revenue figures weighed on AI-linked stocks.
OpenAI reportedly told investors that its annualised revenue stood at $50 billion at the end of September.
A previously reported figure of $68 billion included gross revenue from partners, according to a person familiar with the matter.
The Nasdaq fell more than 1% on Thursday, marking its biggest one-day decline since mid-August. T
he latest rebound lifted software and technology shares, with Palo Alto Networks gaining nearly 5%, CrowdStrike rising 4% and Palantir Technologies advancing 3%. Microsoft and Amazon each gained around 2%.
AI-related stocks have been a major driver of the US bull market, which was approaching its fourth anniversary.
However, concerns about high valuations and the scale of debt and equity financing supporting AI infrastructure investments have contributed to recent volatility.
Investors are also preparing for third-quarter earnings season, which could provide further evidence of whether AI demand is translating into stronger corporate revenue and profits.
SpaceX spectrum deal pressures telecom stocks
SpaceX shares rose after the company announced a deal to acquire a nationwide low-band spectrum portfolio, expanding its ambitions in wireless communications and increasing competitive pressure on established US telecom operators.
The agreement weighed on shares of AT&T, Verizon and T-Mobile, which ended sharply lower. Investors are assessing how SpaceX’s move could affect competition in the wireless market.
Elsewhere, healthcare stocks also supported the broader market.
Humana surged after US government data showed that 95% of its members were enrolled in Medicare Advantage plans rated four stars or higher for 2027.
Merck and Gilead Sciences also gained nearly 3% each, while Moderna shares rose amid optimism surrounding reported US National Institutes of Health cancer vaccine efforts.
Apple shares declined after a Nikkei Asia report said the company had asked some suppliers to reduce component orders for its newly launched iPhone 18 Pro and iPhone 18 Pro Max.
The reported cuts come as rising memory costs and higher device prices raise concerns about consumer demand.
Delta Air Lines also fell after cutting its annual profit forecast, citing fuel costs that were outpacing gains from fares.
Oil, Treasury yields and earnings in focus
Oil prices remained volatile as investors assessed developments in the Middle East.
Brent crude and West Texas Intermediate futures each settled around 0.4% higher on Friday after initially retreating following President Donald Trump’s comments that the US would not attack Iran before the midterm elections.
Long-dated Treasury yields edged higher but remained below the 24-year highs reached earlier in the week. Elevated borrowing costs and uncertainty over inflation continue to influence investor sentiment.
Next week, major US banks, including JPMorgan Chase, Wells Fargo, Citigroup, Goldman Sachs and Bank of America, are scheduled to report quarterly results.
Johnson & Johnson and UnitedHealth are also due to release earnings.
Analysts expect aggregate third-quarter earnings growth of 30.6% for S&P 500 companies, according to LSEG data, with the energy and technology sectors expected to record some of the strongest year-over-year growth.
Investors will also monitor upcoming inflation data for clues about the Federal Reserve’s next policy decision, while developments in oil markets and AI-related spending remain key risks for equities.
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