Nvidia stock climbs 4.7% as tech rallies

Nvidia climbs
Nvidia climbs

The stock market closed higher on Friday, with the S&P 500 and Nasdaq snapping a five-day losing streak. The S&P 500 ended the day up 1.26% at 5,942.47, while the Nasdaq Composite advanced 0.8% to 42,732.13. The Dow Jones Industrial Average also gained 1.77% to close at 19,621.68.

Tech stocks were a standout performer, with chip giant Nvidia climbing 4.7% and server maker Super Micro Computer jumping 10.9%. Constellation Energy and Vistra also saw gains of 4% and 8.5%, respectively. Microsoft announced a significant investment in AI-enabled data centers for fiscal 2025, further boosting the tech sector.

Despite Friday’s rally, the major averages still finished the week lower. The S&P 500 ended the week down 0.48%, the Dow lost 0.60%, and the Nasdaq Composite lost 0.51%. This means the anticipated “Santa Claus” rally failed to materialize.

Mark Hackett, chief market strategist at Nationwide Financial, noted that the lack of a typical end-of-year pullback suggests an orderly consolidation rather than the start of a painful period.

Tech stocks drive market gains

Some individual stocks moved on news out of Washington, D.C. Shares of U.S. Steel fell 6.5% after President Joe Biden said he would block the proposed acquisition by Nippon Steel.

Molson Coors shares declined 3.4% following a U.S. surgeon general advisory on the cancer risk related to alcohol consumption. A larger than usual share of S&P 500 companies are issuing negative fourth-quarter earnings guidance. According to FactSet senior earnings analyst John Butters, more than one-fifth of the companies have provided guidance, with 67% being negative.

UBS forecasted that the S&P 500 could rise more than 12% in 2025. David Lefkowitz, UBS’s chief investment officer of U.S. equities, expects the bull market to continue with the index reaching 6,600 by year-end. However, he also identified potential risks such as changes in trade policies, fiscal battles in Congress, inflation, and the outlook for artificial intelligence.

Microsoft expects to spend $80 billion on AI-enabled data centers in fiscal 2025, with more than half of that spending occurring in the U.S. The company’s shares last traded up more than 1% in Friday’s session. The S&P 500 saw a broad rally on Friday, with about 4 out of every 5 of its stocks advancing and all 11 sectors rising. The Energy sector led the market, climbing about 1% on Friday and up 3.3% for the week, according to FactSet.

Some standout performers included Marathon Oil, which rose 7.7%, and Devon Energy, which increased 8.7%.

Maya Johnson

Maya is the editor-in-chief of KillerStartups.com. She provides value to early-stage entrepreneurs through content and her weekly newsletter. Reach her at [email protected]

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