Economic data also pointed to resilient household borrowing. U.S. consumer credit expanded by $24.045 billion in December, far exceeding forecasts for an $8.000 billion increase and marking the largest monthly gain in a year.
Federal Reserve remarks delivered mixed signals for investors weighing the outlook for monetary policy. Vice Chair Philip Jefferson noted cautious optimism regarding economic momentum and suggested that productivity growth could aid progress toward the central bank’s 2% inflation goal. In contrast, Atlanta Fed President Raphael Bostic argued that policy must remain restrictive to ensure price stability. A summary of recent statements is available on the Federal Reserve’s official site.
Within the technology space, Amazon.com shares slid more than 5%. The company disclosed plans to allocate $200 billion this year to data centers, custom chips, and related infrastructure, a spending level that some market participants fear could prove excessive if anticipated returns from artificial-intelligence initiatives fall short.
Outside large-cap technology, cryptocurrency-related equities rebounded as Bitcoin recovered from a 1.25-year low. The digital asset jumped more than 11% intraday after having briefly fallen more than 50% from its October record high. Blockchain-linked stocks followed suit despite data from derivatives platform Coinglass indicating that U.S. Bitcoin exchange-traded funds saw $434 million in outflows on Thursday and that roughly $2.1 billion in long crypto positions had been liquidated over the previous 24 hours.
The day’s trading emphasized rotation within the technology sector. Chipmakers, software vendors, and AI infrastructure firms—among the hardest hit earlier in the week—recorded outsized gains as traders sought perceived discounts. That rotation helped the Nasdaq 100 narrow its weekly loss, though the index remained negative for the five-day period.
All eleven S&P 500 industry groups finished higher, underscoring broad participation in the rally. Cyclical areas such as industrials and consumer discretionary names advanced alongside growth-oriented technology shares, suggesting that investors remain willing to bet on continued economic expansion despite lingering inflation risks.
In fixed income, Treasury yields were little changed following the mixed commentary from Fed officials. Traders continued to price in a cautious path for rate cuts later in the year, balancing stronger-than-expected credit growth against the encouraging moderation in near-term inflation expectations.
Looking ahead, market focus is expected to shift to next week’s reports on consumer prices and producer prices, which will offer additional insight into whether disinflation is gaining traction. Corporate earnings from several large retailers and chip manufacturers are also on deck, with investors keen to assess the durability of consumer demand and the outlook for capital spending across the technology supply chain.
For now, Friday’s broad-based advance provided a respite after several sessions of turbulence. While questions persist over the trajectory of interest rates, the durability of profit margins, and the ultimate payoff from large-scale AI investments, the market’s ability to recover lost ground highlights the continued influence of dip-buying strategies in a still-liquid trading environment.
Crédito da imagem: Getty Images
