New york: The New York Stock Exchange finished the week on a positive note, driven by a recovery in technology stocks. The Dow Jones Industrial Average climbed 2.47%, or 1,206.95 points, closing at 50,115.67. The Nasdaq also saw a significant increase of 2.18%, or 490.63 points, reaching 23,031.21, while the S and P 500 rose by 1.97%, or 133.9 points, to end at 6,932.30. The Volatility Index (VIX), commonly referred to as the "fear index," dropped sharply by 18.42% to 17.76 points.
According to Anadolu Agency, the stock market rebounded on the last trading day of the week after a period dominated by selling pressure on technology stocks. Concerns regarding the impact of AI spending on corporate profitability and indications of a cooling US labor market had previously dampened risk appetite in the markets. Throughout the week, investors focused on financial results announced by companies, particularly scrutinizing the effects of costs associated with the AI race on corporate balance sheets.
Shares of Amazon experienced a sharp decline following the company's fourth-quarter net sales, which exceeded expectations, but its profits fell short. Additionally, Amazon increased its spending forecast for 2026 to $200 billion, with capital expenditures reaching $131 billion in 2025. With the acceleration of the AI race, Amazon joined other major technology companies, such as Alphabet, in announcing plans to increase spending.
Chip stocks saw a rise due to expectations that increased AI spending by companies like Amazon and Alphabet would benefit chip manufacturers. Nvidia shares rose 7.9%, AMD gained 8.3%, and Broadcom increased by 7.1%. Software companies, which had faced difficulties amid concerns about AI tools potentially reducing demand, also experienced a recovery in their shares. Oracle shares rose by 4.7%, and CrowdStrike shares increased by 4.9%.
On the macroeconomic front, the University of Michigan's consumer confidence index rose to 57.3 in February, surpassing expectations. Data released prior to next week's US inflation figures indicated that consumers' short-term inflation expectations fell from 4% in January to 3.5%, marking the lowest level since January 2025. Conversely, long-term inflation expectations rose for the second consecutive month, climbing from 3.3% to 3.4%.