Wall Street Eyes Record Week as Stocks Climb/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stock markets continued their record-setting momentum Friday, buoyed by optimism around artificial intelligence and potential interest rate cuts. The S&P 500, Dow, and Nasdaq all inched higher, extending gains from Thursday’s all-time highs. A delayed jobs report due to the government shutdown hasn’t dampened investor enthusiasm.
Wall Street Weekly Wrap: Quick Looks
- S&P 500 and Nasdaq rise, setting fresh records.
- Dow climbs 167 points in early Friday trading.
- Seventh winning week in last nine for S&P 500.
- Government shutdown delays key jobs report release.
- Investors banking on Fed rate cuts as job growth slows.
- AI boom continues as Hitachi signs deal with OpenAI.
- Nvidia and Broadcom see gains, AI optimism builds.
- Applied Materials dips on China export rule impact.
- Treasury yields hold steady as bond market remains calm.
Deep Look
U.S. Stocks Surge to End Record Week, Powered by AI Hype and Fed Optimism
NEW YORK — U.S. stocks continued their rally Friday morning, extending a record-setting week as tech optimism and expectations for Federal Reserve rate cuts kept Wall Street moving higher — even amid a U.S. government shutdown.
The S&P 500 climbed 0.2%, pacing toward its seventh winning week out of the last nine, while the Dow Jones Industrial Average added 167 points (0.4%) and the Nasdaq Composite rose 0.2%. All three major indexes set all-time highs on Thursday and looked to build on that momentum as trading resumed.
Missing Jobs Report No Roadblock for Markets
Normally, the first Friday of the month centers around the highly anticipated U.S. jobs report, a key economic indicator that helps shape the Federal Reserve’s interest rate policy. However, with the government shutdown now in its third day, the release has been delayed — along with other labor market data like Thursday’s unemployment claims report.
Despite the lack of fresh jobs data, investor sentiment remains upbeat.
“The market’s not panicking,” said one Wall Street analyst. “Historically, shutdowns have limited long-term market impact — and the Fed’s path is more important right now.”
Investors continue to bet that the job market is cooling enough to encourage the Fed to cut interest rates further after its recent series of hikes aimed at curbing inflation.
AI Keeps Fueling Market Optimism
One of the strongest drivers of Wall Street’s 2025 bull run has been the explosive growth in artificial intelligence — and that trend continued Friday. Japan’s Hitachi surged 10.3% in Tokyo after signing a memorandum of understanding with OpenAI, the U.S.-based AI research company. This followed earlier announcements between OpenAI and South Korean tech firms, signaling expanding global AI partnerships.
In the U.S., AI giants responded positively:
- Nvidia rose 0.6%
- Broadcom gained 1.5%
These modest but steady gains reflect growing confidence that AI will continue to drive massive corporate investment, even as some experts warn of a potential bubble in the sector due to soaring valuations.
“The AI boom is real — but like all tech surges, the risk of overvaluation is growing,” said an industry analyst.
Winners and Losers: Tech Up, Chip Equipment Down
While AI-focused stocks mostly trended upward, not all tech companies joined the rally. Applied Materials fell 2.5% after announcing it expects a $110 million revenue hit in Q4 due to new U.S. export restrictions targeting Chinese customers.
The U.S. Commerce Department’s updated rule, which expands limits on chipmaking technology sold to certain firms in China, will weigh on Applied Materials’ near-term earnings — a reminder that geopolitical risk still casts a shadow over the tech sector.
Bond Market Steady, Treasury Yields Inch Lower
In the bond market, the 10-year Treasury yield slipped slightly to 4.09%, down from 4.10% on Thursday. The stability in yields suggests investors are still cautious but not reacting aggressively to either the shutdown or the missed data releases.
Lower yields typically signal expectations of slower economic growth or easier monetary policy — both themes aligned with the current market mood.
Global Market Snapshot
Asia-Pacific and European indexes were mixed, though Japan’s Nikkei 225 stood out, rising 1.9%, largely fueled by Hitachi’s AI-related rally.
Other international markets showed more modest movement, reflecting a global market still largely in wait-and-see mode amid the U.S. government shutdown and ongoing macroeconomic uncertainty.
What’s Next for Wall Street?
With Friday’s gains, Wall Street appears poised to close the week at new record levels, underscoring investor confidence in:
- AI-led tech innovation
- A resilient economy
- A potentially dovish Federal Reserve
Still, with no official jobs report and uncertainty about how long the shutdown will last — especially as President Donald Trump threatens large-scale federal layoffs — volatility could increase in the weeks ahead.
For now, though, bulls are firmly in control.
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