NEW YORK (AP) — Wall Street snapped out of its holiday-season funk on Friday.
The S&P 500 rallied 1.3% for its first gain since Christmas and its best day in nearly two months. Strength for Big Tech stocks helped it break a five-day losing streak, its longest since April, and trim its loss for the week to 0.5%.
The Dow Jones Industrial Average rose 339 points, or 0.8%, and the Nasdaq composite leaped 1.8%.
Nvidia was the strongest force lifting the market after dashing 4.5% higher. Other companies caught up in the craze around artificial-intelligence technology also rose, despite criticism that their stock prices have already vaulted too high. Super Micro Computer, which sells servers for AI and other uses, jumped 10.9%, and Palantir Technologies climbed 6.3%.
“While the easy gains in AI may be behind us, we think this rally looks far from over,” according to Solita Marcelli, chief investment officer, Americas, at UBS Global Wealth Management.
Another influential Big Tech stock, Tesla, jumped 8.2% to bounce back from its 6.1% tumble the day before, when it disclosed it delivered fewer electric vehicles in the last three months of 2024 than analysts expected.
Rival Rivian soared 24.5% after saying it delivered more than 14,000 vehicles during the latest quarter. That was more than analysts expected.
On the losing end of Wall Street was U.S. Steel, which fell 6.5% after President Joe Biden blocked a nearly $15 billion deal proposed by Japan’s Nippon Steel to buy its Pittsburgh-based rival.
Beer, wine and liquor companies sank after U.S. Surgeon General Vivek Murthy warned about the direct link between alcohol consumption and increased cancer risk. He called for an update on the health warning label on alcoholic drinks, as well as for a reassessment of guidelines for alcohol consumption to account for cancer risk.
Molson Coors Beverage fell 3.4%. Brown-Forman, the distillery behind Jack Daniel’s, lost 2.5%.
All told, the S&P 500 rose 73.92 points to 5,942.47. The Dow Jones Industrial Average gained 339.86 to 42,732.13, and the Nasdaq composite jumped 340.88 to 19,621.68.
Wall Street’s post-Christmas pullback dimmed its shine by only a bit following two stellar years for U.S. stock indexes. They’ve vaulted to records after the U.S. economy managed to keep growing despite high interest rates that have helped push inflation nearly all the way down to the Federal Reserve’s 2% target.
But even though the economy and job market still look solid at the moment, the path ahead is not assured. Part of the reason the S&P 500 set more than 50 all-time highs last year was because of the expectation that the Fed would keep cutting interest rates through 2025, after it began easing them in September.
