On Friday, U.S. stocks finally broke a five-day slump, buoyed by gains in consumer discretionary and technology sectors, which signaled investors were ready to embrace a bit more risk.
The market’s uptick was supported by promising ISM Manufacturing data coupled with a sense of political calm after Mike Johnson’s reelection, both of which helped lift investor spirits.
Stocks saw a noticeable boost as the trading day progressed, coinciding with Congressman Mike Johnson’s reappointment as Speaker of the House. This development suggested a reduction in previously rampant political discord within the Republican Party, providing an additional layer of market stability.
Technology stocks benefited from a significant statement by Microsoft’s president, Brad Smith, who announced that the company plans to invest $80 billion in data centers by 2025, driven by the ongoing AI surge. Smith’s comment that the country hasn’t experienced such a technological opportunity since the advent of electricity highlighted the potential for economic rejuvenation, further propelling tech stocks.
Confidence in the nuclear sector soared after analysts showed optimism over its role in fueling AI data centers, helping shares of Constellation Energy Group climb 4%, while Vistra Corp. saw an impressive 8.5% bump. This came after Constellation disclosed a $1 billion deal to supply power to over a dozen government entities.
Nvidia, a heavyweight in the chip industry, experienced a more than 4% rise during the same trading session.
The market also drew optimism from the December ISM Manufacturing report, which unexpectedly hit 49.3%, the highest point in nine months. This exceeded economists’ projections of 48.0% and improved on November’s figure of 48.4%.
As we approach the following week, eyes will be on upcoming economic reports, including jobless claims, initial consumer sentiment insights, and December’s U.S. employment statistics.
Here’s how the major U.S. indexes wrapped up at the 4:00 p.m. close on Friday:
In other developments throughout the day:
Turning to commodities, bonds, and cryptocurrency, here’s what unfolded:
West Texas Intermediate crude oil climbed 1.24% to $74.04 per barrel, while Brent crude, the global standard, gained 0.84%, reaching $76.57 per barrel.
Gold saw a dip, dropping 0.67% to $2,651.00 per ounce.
The 10-year Treasury yield inched up by 3 basis points, marking 4.603%.
Bitcoin enjoyed an uptick of 1.53%, settling at $98,386.
This content was originally shared on Business Insider.
