Wall Street Rebounds as Tech Stocks, Bitcoin Stabilize/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks rebounded Friday as technology shares recovered earlier losses and bitcoin stabilized. Chipmakers led gains, helping Wall Street claw back from a rough week. Despite the bounce, markets remain uneasy over heavy AI spending and global uncertainty.
Wall Street Tech Rebound: Quick Looks
- S&P 500 rises as markets recover from sharp losses
- Dow jumps more than 600 points in early trading
- Chip stocks like Nvidia and Broadcom lead gains
- Big Tech AI spending fuels optimism and concern
- Bitcoin steadies after a steep multiweek plunge
- Crypto-related stocks surge alongside bitcoin recovery
- Global markets mixed amid corporate and policy shifts
Deep Look: Wall Street Rebounds as Tech Stocks, Bitcoin Stabilize
NEW YORK — Wall Street rebounded Friday as technology stocks regained some footing and bitcoin stopped its steep slide, offering investors a measure of relief after a bruising stretch that rattled global markets earlier in the week.
The S&P 500 rose 0.9%, on track for just its second gain in eight trading sessions. The Dow Jones Industrial Average climbed about 610 points, or 1.2%, while the Nasdaq Composite added 0.7% as of mid-morning trading.
Chipmakers powered much of the advance. Nvidia rose 2.9%, trimming losses from earlier in the week, while Broadcom gained 3.4%. Investors remain hopeful that corporate demand for chips tied to artificial intelligence will continue to grow despite rising costs.
That optimism was bolstered by comments from Amazon, which said it expects to invest roughly $200 billion this year to capitalize on opportunities in AI, advanced chips, robotics and low Earth orbit satellites. Similar spending plans were announced earlier in the week by Alphabet.
Still, the aggressive investment push has also sparked unease. Investors are increasingly questioning whether massive AI-related spending will translate into future profits. That concern weighed on Amazon’s stock, which tumbled nearly 10% despite the broader market rebound.
Even with Friday’s gains, the S&P 500 remains on pace for its worst weekly decline since November and its third weekly drop in four weeks. Worries about Big Tech valuations and fears that AI tools could erode demand for traditional software products have pressured markets throughout the week.
In cryptocurrency markets, bitcoin found some stability after a prolonged selloff that cut its value by more than half from a record set in October. The digital currency climbed back above $68,000 after briefly dipping near $60,000 late Thursday.
The rebound in bitcoin helped lift stocks tied to the crypto economy. Robinhood Markets surged nearly 12% for one of the biggest gains in the S&P 500. Coinbase Global rose 6.6%, while Strategy jumped more than 15%.
Metals markets also showed signs of calming after recent volatility. Gold rose 0.7% to about $4,924 an ounce, while silver slid 3.2%. Prices had surged earlier on demand for safe-haven assets amid political uncertainty, concerns about elevated stock valuations and mounting global debt. Analysts, however, warned that the pace of those gains had become unsustainable.
Overseas, stock markets were mixed. European indexes edged higher even as Stellantis shares plunged in Milan after the automaker announced a massive charge tied to scaling back electric vehicle production. The company acknowledged it had overestimated the pace of the energy transition and said it was recalibrating to better match consumer demand.
Asian markets mostly declined, though Japan’s Nikkei 225 rose 0.8%, helped by a gain in Toyota Motor. Toyota said its CEO will step down in April, with the company’s chief financial officer set to take the top role.
In the bond market, the yield on the 10-year U.S. Treasury edged slightly lower to 4.20%, signaling continued caution among investors even as stocks attempted a rebound.
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