US stocks rallied on Friday, putting an end to a five-day losing streak for major indexes amid a surge in consumer discretionary and technology sectors. The positive momentum reflected a shift towards riskier assets as investors welcomed upbeat ISM Manufacturing data and the stability brought by the reelection of Congressman Mike Johnson.
The S&P 500, Dow Jones, and Nasdaq 100 all saw gains, with consumer discretionary and technology stocks leading the charge. The market reached session highs as news broke of Johnson securing his position as Speaker of the House, suggesting a potential easing of internal strife within the Republican Party.
Microsoft president Brad Smith’s optimistic outlook on the tech giant’s investment in data centers, projected at $80 billion by 2025, further buoyed technology stocks. Smith emphasized the transformative potential of new technologies in revitalizing the national economy, drawing parallels to the historical significance of electricity’s invention.
In a separate development, nuclear stocks surged on heightened analyst interest linked to the demand arising from AI data centers. Constellation Energy Group and Vistra Corp. witnessed notable gains, with Constellation sealing a substantial $1 billion contract to supply power to various government agencies. Chip manufacturer Nvidia also experienced a significant uptick in its stock price during the session.
Investor sentiment received a boost from the December ISM Manufacturing data, which surpassed expectations to reach a nine-month high of 49.3%. This exceeded economists’ projections of 48.0% and outpaced November’s figure of 48.4%. Looking ahead, market participants are eagerly awaiting key economic updates scheduled for the upcoming week, including jobless claims, preliminary consumer sentiment figures, and the much-anticipated US employment report for December.
At the close of trading on Friday, major US indexes stood as follows:
– S&P 500: 5,942.48, up 1.26%
– Dow Jones Industrial Average: 42,732.13, up 0.80% (+339.86 points)
– Nasdaq Composite: 19,621.68, up 1.77%
In other news from the day:
– BlackRock’s bitcoin ETF experienced a substantial outflow exceeding $300 million, marking a record for daily withdrawals.
– Alcohol stocks faced a downturn following a warning from the US surgeon general regarding cancer risks associated with alcohol consumption.
– The US shale oil industry showed no signs of slowing down as executives announced plans to increase spending.
– President Joe Biden intervened to block Japan’s $14 billion bid to acquire US Steel on national security grounds.
– Analysts at Citi identified Warren Buffett’s favored internet stock as a top choice for investors in 2025.
Commodity, bond, and cryptocurrency market movements included:
– West Texas Intermediate crude oil rose by 1.24% to $74.04 per barrel, while Brent crude, the international benchmark, climbed 0.84% to $76.57 per barrel.
– Gold prices dipped by 0.67% to $2,651
