U.S. equity markets extended their rally Friday, with the Nasdaq and S&P 500 closing at fresh all-time highs, as investor enthusiasm around artificial intelligence and upcoming tech earnings fueled a powerful surge in growth stocks.
AI Chips Lead the Charge
Tech giants Nvidia and AMD drove market momentum once again, continuing their bullish run on accelerating demand for AI semiconductors. Taiwan Semiconductor Manufacturing Co. (TSMC) also posted strong gains, riding the wave of investor confidence in next-generation chip manufacturing.
The rally extended to lesser-known AI players like Astera Labs, which broke past key resistance levels, and Block Inc., which surged after its inclusion in the S&P 500.
Earnings in Focus: Tesla & Alphabet (Google)
All eyes are now on Tesla and Alphabet (Google), both scheduled to report earnings early next week.
Tesla climbed over 5%, bolstered by investor optimism around its forthcoming robotaxi announcement, despite expectations of a dip in quarterly profits. Analysts say the company’s long-term autonomous vehicle roadmap is fueling fresh bullish sentiment.
Alphabet rose 2.7%, remaining in a strong technical position. Momentum continues to build around its AI integration across Google Search, YouTube, and Google Cloud, all of which are expected to be focal points in its earnings call.
Caution Ahead
Despite the upbeat sentiment, some analysts are warning that markets may be overextended in the short term. With a slew of tech earnings set to roll in over the next two weeks including Microsoft, Amazon, and Meta volatility could increase if results disappoint.
Market Summary
Index Performance
Nasdaq +0.6% — New record
S&P 500 +0.4% — New record
Dow Jones -0.3% — Pulled lower by industrial stocks
Looking Ahead
Investors are preparing for a potentially pivotal week, with tech earnings, tariff-related trade tensions, and macroeconomic data all in play. Market watchers suggest staying alert for buying opportunities during possible pullbacks, especially in AI and industrial sectors.
