The U.S. stock market is heading into the final trading day of the week on a positive note as Wall Street stages a strong comeback, fueled by impressive earnings from some of the world’s biggest technology companies. Nasdaq 100 futures climbed more than 1% in early Friday trading, while Dow Jones futures gained 293 points and S&P 500 futures also edged higher. The renewed optimism follows a turbulent week that saw investors swing between concerns over interest rates and excitement surrounding artificial intelligence-driven growth.
Investor confidence received a major boost after Amazon reported better-than-expected second-quarter revenue, driven largely by the continued strength of its cloud computing business. The results reinforced expectations that corporate spending on artificial intelligence remains robust, sending Amazon shares more than 9% higher in after-hours trading. Microsoft also played a key role in the market’s rebound after posting stronger-than-expected Azure cloud growth, with its shares soaring 16% and lifting semiconductor companies alongside it. The iShares Semiconductor ETF climbed more than 8%, reflecting renewed enthusiasm across the AI sector.
Apple also delivered stronger-than-expected fiscal third-quarter revenue, supported by a remarkable 22% increase in iPhone sales. However, weaker-than-expected services revenue tempered investor enthusiasm, causing the company’s shares to slip about 6% in extended trading. Even with Apple’s decline, the broader technology sector remained firmly in focus as investors continued to reward companies delivering solid financial results and demonstrating resilience in the fast-growing AI market.
The market’s recovery comes just one day after Wall Street suffered one of its sharpest sell-offs in more than a year. On Wednesday, the Dow Jones Industrial Average plunged over 1,100 points after the U.S. Federal Reserve left interest rates unchanged, raising fresh concerns that policymakers may be moving too slowly to control inflation. Those fears also pushed Treasury yields higher, with the 30-year Treasury yield rising above 5.2%, its highest level since 2007. Market analysts believe investors are now reassessing expectations for future interest rate cuts while shifting their attention toward companies with strong fundamentals rather than speculative momentum.
The positive mood extended well beyond the United States. Asian markets rallied strongly, led by South Korea’s Kospi index, which jumped more than 15% as Samsung Electronics and SK Hynix posted impressive gains. Japan’s Nikkei 225 also advanced over 3%, while major European indexes, including Germany’s DAX, France’s CAC 40, and the pan-European Stoxx 600, traded higher. Despite the week’s volatility, Wall Street’s major indexes remain on course for weekly gains, suggesting investor confidence is gradually returning as strong corporate earnings continue to outweigh broader economic uncertainty.
source: cnbc
