US stocks soar to their best day since May as the Dow tops 50,000

Описание: The U.S. stock market roared back, as technology stocks recovered much of their losses from earlier in the week and bitcoin halted its plunge, at least for now.

The S&P 500 jumped 2% Friday for its best day since May. The Dow Jones Industrial Average soared roughly 1,200 points and topped the 50,000 level for the first time, while the Nasdaq composite rallied 2.2%.

Chip companies helped drive the gains on hopes for more big spending by customers diving into AI technology. Stocks also got a boost from a better reading on sentiment among U.S. consumers. Bitcoin rose back above $70,000.

They were among the strongest forces lifting the S&P 500, and they benefited from hopes for continued spending by customers diving into artificial-intelligence technology. Amazon, for example, said late Thursday it expects to spend about $200 billion on investments this year to take advantage of “seminal opportunities like AI, chips, robotics, and low earth orbit satellites.”

Such heavy spending, similar to what Alphabet announced a day earlier, is creating concerns of its own, though. The question is whether all those dollars will prove to be worth it and create much bigger profits in the future. With doubt remaining about that, Amazon’s stock dropped 7%.

Even with Friday’s rebound, the S&P 500 is still potentially heading toward its third losing week in the last four. Besides worries about big AI spending by Big Tech companies, whose stocks are the most influential on Wall Street, concerns about AI potentially stealing customers away from software companies also hurt the market through the week. The hits for software stocks accelerated after AI firm Anthropic released free tools to automate things like legal services.

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