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US Stocks Soar, Dow Tops 50,000
7 Feb
Summary
- Dow Jones surpassed 50,000 for the first time in its history.
- Technology stocks, particularly chipmakers like Nvidia, drove the market's recovery.
- Consumer sentiment improved slightly, boosting airline and smaller company stocks.
U.S. stock markets experienced a strong rebound on Friday, with major indices posting significant gains. The Dow Jones Industrial Average soared 2.5%, crossing the 50,000 mark for the first time. Technology stocks, particularly Nvidia and Broadcom, were instrumental in the rally, recovering from earlier weekly losses due to renewed investor confidence in artificial intelligence spending. Amazon's CEO indicated significant investment in AI and related technologies, though the company's stock dipped amid profit concerns.
Despite Friday's surge, the S&P 500 recorded its third losing week in four, impacted by worries over Big Tech spending and potential customer disruption from AI. Bitcoin also steadied, climbing back above $70,000 after a period of significant decline. Metals prices, including gold and silver, calmed after recent wild swings. Stocks of cryptocurrency-related companies like Robinhood and Coinbase saw notable gains.
Encouraging data on U.S. consumer sentiment, showing a slight improvement contrary to economists' expectations, supported gains in smaller U.S. companies and airline stocks. The Russell 2000 index of smaller companies outperformed the S&P 500. Globally, European markets generally rose, while Asian markets were mixed. Treasury yields remained relatively steady.
