US stock indices had a strong start at the opening of trading on Friday, recording a remarkable recovery to offset previous losses, driven by a return of confidence in the technology and software sector.
This strong rise came after a sharp sell-off that recently gripped the markets, which was caused by growing investor concerns about the impact of artificial intelligence (AI) technologies on traditional business models, and the extent to which these companies can achieve the desired returns from their huge investments in this field.
Performance of major indices: Dow Jones leads the gains
Leading the gainers was the Dow Jones Industrial Average, which soared 1.25%, adding a full 611 points to reach a new record high of 49,519. This surge reflects optimism among traders in the industrial and traditional sectors covered by the index.
The gains weren't limited to the Dow Jones; the broader market saw the S&P 500 climb 1% to 6,863 points. The tech-heavy Nasdaq Composite also joined the rally, rising 0.8% to 22,720 points, signaling a return of risk appetite for growth stocks.
Mixed performance among major companies: Amazon falters, Reddit rebounds
Despite the overall positive market sentiment, Amazon bucked the trend, with the e-commerce giant's stock plummeting 9% to $202.16. This sharp decline was a direct reaction from investors following the company's disappointing Q4 2025 earnings report, which fell short of Wall Street analysts' expectations and raised questions about future revenue growth.
In contrast, shares of the social media platform Reddit saw a notable positive performance, rising by 6.32% to reach $160.9. This rise was closely linked to improved sentiment in the cryptocurrency market, coinciding with Bitcoin's recovery and the easing of the recent sell-off in digital assets, thus confirming the growing correlation between tech stocks and crypto markets.
The economic context and the importance of the event
This rise in US indices is particularly significant given the current economic climate. Historically, the movements of the Dow Jones and Nasdaq have served as a compass for global financial markets. The market's ability to absorb concerns related to artificial intelligence and rebound quickly reflects the resilience of the US economy and the strength of available liquidity.
The fact that the indices have reached such high levels (the Dow Jones is approaching the 50,000-point mark) carries significant psychological and technical implications for investors worldwide, indicating continued buying momentum despite the regulatory and technological challenges facing major technology companies. Economic analysts are closely monitoring these movements, as stability on Wall Street often has a positive impact on emerging markets and European and Asian stock exchanges.
