U.S. stocks opened higher on Friday, supported by a renewed AI stock rally that helped lift overall market sentiment. Strength in artificial intelligence-linked names, including Nvidia (NASDAQ:NVDA), offset weakness in select consumer stocks and kept the major indexes in positive territory early in the session.
In the first few minutes of trading, the S&P 500 rose 0.5%, while the Dow Jones Industrial Average added about 256 points, also up 0.5%. The Nasdaq Composite climbed 0.7%, reflecting investors’ renewed appetite for growth and technology stocks. Despite the early gains, the S&P 500 remained slightly lower for the week, highlighting the choppy tone that has characterized recent trading.
AI Stocks Regain Leadership
The AI stock rally has once again taken center stage after a brief period of consolidation. Shares of Nvidia (NASDAQ:NVDA), widely viewed as the bellwether for artificial intelligence demand, turned higher and helped buoy the broader technology sector. Investors continue to view AI-related stocks as long-term structural winners, even as macroeconomic uncertainty persists.
Technology strength also spilled over into other growth-oriented names. The Nasdaq futures market pointed higher before the opening bell, signaling that traders were positioning for continued leadership from AI and cloud-related stocks.
Corporate Movers Shape the Session
Outside of big tech, individual earnings drove sharp moves in several stocks. Winnebago Industries (NYSE:WGO) surged roughly 14% after reporting quarterly profits and revenues that easily topped analysts’ expectations. The strong results suggested resilient consumer demand in certain discretionary categories, even as higher interest rates weigh on broader spending trends.
Not all corporate news was positive. Nike, Inc. (NYSE:NKE) shares slumped more than 10%, as concerns over tariff-related cost pressures overshadowed what was otherwise a solid quarterly performance. Investors appeared wary of how rising trade costs could impact margins in coming quarters.
Deckers Outdoor Corp. (NYSE:DECK), the owner of Ugg and Hoka, also fell more than 3%. The decline reflected investor concerns that the company could face similar trade-related headwinds amid ongoing global tariff tensions.
Meanwhile, Oracle Corporation (NYSE:ORCL) gained about 4% following news that it, along with Silver Lake and MGX, had signed agreements to form a new TikTok U.S. joint venture. Each partner will reportedly hold a 15% stake, a move designed to ensure the popular social video platform can continue operating in the United States. The development added another catalyst to Oracle’s cloud and AI narrative.
Global Markets React to Japan’s Rate Hike
Overseas, markets digested a major policy shift from the Bank of Japan (BOJ). The central bank raised its benchmark interest rate by 0.25 percentage points to 0.75%, the highest level in 30 years. The move was widely expected and had been largely priced into markets ahead of time.
Japanese equities reacted positively. The Nikkei 225 climbed 1% to 49,507.21, leading gains across Asia’s major markets. Following the BOJ decision, Japan’s 10-year government bond yield moved above 2% for the first time since 2006, signaling a meaningful shift in the country’s long-standing ultra-loose monetary policy.
The U.S. dollar strengthened against the yen, rising to 157.08 from 155.53. Despite the significance of the rate hike, global investors appeared unfazed, suggesting confidence that the transition would be gradual and well-telegraphed.
Asia and Europe Show Mixed Signals
Elsewhere in Asia, markets posted broad gains. Hong Kong’s Hang Seng Index rose nearly 0.8%, while China’s Shanghai Composite added 0.4%. South Korea’s Kospi climbed 0.7%, and Australia’s S&P/ASX 200 advanced 0.4%.
Optimism across the region was also supported by expectations of future U.S. Federal Reserve rate cuts. A lower-than-expected U.S. inflation reading of 2.7% for November has increased hopes that the Fed may have more room to ease policy as the labor market cools.
In Europe, markets were more subdued. Germany’s DAX and France’s CAC 40 each edged 0.1% lower at midday, while the U.K.’s FTSE 100 was flat, reflecting a cautious tone amid mixed economic data.
Commodities and Crypto Add Context
In commodities, U.S. benchmark crude oil rose 31 cents to $56.31 per barrel, while Brent crude gained 30 cents to $60.12. The modest uptick suggested stable energy demand expectations.
Bitcoin prices also jumped, rising nearly 4% to just under $88,000, according to CoinDesk. The move added to the broader risk-on tone and complemented the ongoing AI stock rally that helped push Wall Street higher to close out the week.
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