US stocks surged on Friday after a week of tech‑driven turbulence, as investors reassessed concerns about AI disruption and the hefty capital outlays of large technology firms.
The Dow Jones Industrial Average leapt more than 2 percent, climbing over 1,000 points to within reach of the 50,000 mark. The S&P 500 and Nasdaq Composite also climbed, up 1.6 percent and roughly 2 percent respectively, snapping back from sharp closing losses earlier in the week.
While leaders of major technology firms have dismissed worries that new AI tools will undermine existing products, the S&P 500 and Nasdaq still face weekly declines as they have slipped into negative territory for 2026.
Risk‑on sentiment spilled over into other markets: Bitcoin rallied back above $68,000 after a 16‑month low, though it remains on track for its worst weekly performance since 2022.
A crypto‑focused company announced a quarterly loss, but its shares jumped 13 percent after Bitcoin’s rebound and its chief executive downplayed debt‑servicing concerns.
On the other hand, a leading e‑commerce and cloud giant saw its shares tumble 7 percent after reporting a 2026 capital‑expenditure plan that would push spending to at least $200 billion, even as operating‑income forecasts fell short.
A major automotive manufacturer warned it would take a charge of more than 22 billion euros to scale back its electric‑vehicle push, sending its shares down 20 percent and adding to a broader sense of EV malaise after a significant wipeout for a Chinese automaker.
In commodities, silver whiplashed but largely resumed its decline as Chinese selling continued ahead of a national holiday.
Looking ahead, the release of the January jobs report has been pushed to next Wednesday, and fresh labor‑market data show job openings at their lowest level since 2020 while layoff announcements have surged.
Meanwhile, a heavy‑equipment manufacturer led the Dow’s rally with a 6 percent jump, reaching an intraday high above $720 per share and benefiting from a record backlog of orders and growing demand from AI and data‑center infrastructure.
Analysts estimate that large technology firms will spend roughly $650 billion on artificial‑intelligence initiatives in 2026.
