U.S. stocks concluded Friday with significant gains, securing a winning week for Wall Street, driven by a strong performance in the tech sector. The Dow Jones Industrial Average soared over 400 points, buoyed by President Donald Trump’s announcement of a diesel supply deal with Russia and a rebound in AI-linked stocks following earlier jitters. Investors also navigated fluctuating Treasury yields, oil prices, and upcoming earnings reports, while watching ongoing geopolitical developments.
U.S. equity markets closed significantly higher on Friday, marking a winning week for Wall Street. The tech sector led the rally, helping stocks recover from a volatile period characterized by elevated Treasury yields, surging oil prices, and recent concerns surrounding the artificial intelligence (AI) trade.
The Dow Jones Industrial Average climbed 423.31 points, or 0.83%, to finish at 51,654.95. The S&P 500 gained 0.59% to 7,811.54, while the Nasdaq Composite added 0.64% to close at 27,366.17.
A notable catalyst for Friday's gains came after President Donald Trump announced that Russian President Vladimir Putin had agreed to supply diesel to both the U.S. and global markets. This news initially eased concerns about oil supplies, though prices for West Texas Intermediate crude futures and Brent crude futures, which closed marginally higher earlier, saw slight declines post-settlement after the announcement. WTI crude settled near $92 per barrel, and Brent crude above $104.
Michael Nagle | Bloomberg | Getty Images
Individual stock movements contributed significantly to the market's performance. SpaceX shares rose 1% after the Elon Musk-led company announced a deal to acquire a nationwide spectrum portfolio. Conversely, telecom giants AT&T, Verizon, and T-Mobile experienced declines, with Verizon pacing for its worst day since 2002, as investors feared increased competition.
The broader tech sector, particularly software stocks, saw strong advances. Palo Alto Networks jumped 5%, while CrowdStrike and Palantir Technologies increased by 4% and 5%, respectively. "Magnificent Seven" constituents also contributed, with Microsoft up 2% and Amazon gaining 3%.
Outside of technology, the healthcare sector was a standout. Merck and Gilead Sciences each saw jumps of more than 2%. Vaccine stocks like Moderna also surged on optimism surrounding reported National Institutes of Health (NIH) cancer vaccine efforts.
Earlier in the week, tech stocks, especially those linked to AI, faced pressure after CNBC confirmed that OpenAI reported $50 billion in annualized revenue at the end of September, lower than previously rumored figures. This led to the Nasdaq's biggest one-day loss since mid-August on Thursday. Adam Crisafulli of Vital Knowledge commented on the AI sector, suggesting that the sell-off reflected "extreme positioning imbalances" and that a V-shaped rebound is unlikely given concerns about the attractiveness of standalone frontier labs and the "tidal wave of AI-linked debt and equity."
Despite the volatility caused by longer-dated Treasury yields reaching new 24-year highs, all three major U.S. averages posted weekly gains: the Nasdaq advanced 0.6%, the Dow added 0.9%, and the S&P 500 climbed around 1.2%.
Looking ahead, earnings season will pick up steam next week, with major banks set to report, alongside companies like Johnson & Johnson and UnitedHealth. Other notable earnings include Wells Fargo and Citigroup.
Michael Monaghan of Founder ETFs expressed a constructive view on equities through year-end but warned that the Middle East conflict and its impact on oil prices could still weigh on the market, despite Trump's pledge that the U.S. would not attack Iran prior to the midterm elections.
Additional Market Movers & News Highlights:
Consumer Sentiment Worsens: Consumer sentiment dipped in early October to its second-lowest on record, according to the University of Michigan survey, as inflation expectations rose. The index came in at 46.3, down 3.7% from September.
VIDEO: October consumer sentiment misses estimates.
Source: Squawk on the Street (1:46)Brazil ETF Surges: The iShares MSCI Brazil ETF (EWZ) gained 13% this week, its best performance since November 2020, following the first round of the country's presidential election, where Senator Flavio Bolsonaro exceeded expectations against President Luiz Inacio Lula da Silva.
EWZ, 5-day chart Morgan Stanley Upgrades Cboe: Morgan Stanley upgraded Cboe Global Markets to overweight, citing the renewal of its S&P Dow Jones Indices (DJI) contract and durable options growth.
CBOE, 1-day chart Lumentum Optimism: Lumentum shares rose 6% after CEO Michael Hurlston stated that the company's optical components are sold out through 2029.
Delta Misses Earnings: Delta Air Lines shares fell 4% after reporting its first earnings miss in two years and cutting its 2026 outlook due to higher fuel prices.
DAL 5-day chart Apple Production Cuts: Apple shares declined after Nikkei Asia reported that the company cut component orders for its iPhone 18 Pro models due to weaker-than-expected demand.
AI IPO Withdrawn: Australian AI data center operator Firmus, backed by Nvidia, withdrew its planned mega IPO citing market volatility.
Opposition to Data Centers: Growing public opposition to data center construction and negative sentiment towards AI are setting up the technology as a key political issue for the 2026 midterm elections, potentially impacting Wall Street's significant AI investments.
A demonstrator holds a 'No Data Center!' sign during a protest against artificial intelligence (AI) outside Winchester Hall in Frederick, Maryland, US, on Saturday, July 18, 2026.
Graeme Sloan | Bloomberg | Getty ImagesHousehold Debt Worsens: A Federal Reserve survey revealed that U.S. families' ability to meet debt payments has worsened over the past three years, reaching levels not seen since the 2010 financial crisis.
