Major U.S stock indices finished higher on Thursday (Friday AEDT) as investors shifted focus from technology stocks to cyclicals that stand to benefit from economic acceleration.
The Dow Jones Industrial Average surged 461.9 points or 1.1% to 43,870.4, the S&P 500 advanced 31.6 points or 0.5% to 5,948.7, while the Nasdaq Composite closed flat at 18,972.4, reflecting mixed sentiment within the tech sector.
Financials and industrials led the charge, with notable gains in Goldman Sachs, Caterpillar, and Home Depot. The Russell 2000 Index, seen as a barometer for small-cap stocks likely to benefit from President-elect Donald Trump's economic policies, also gained 1.7%.
Nvidia, the AI chip leader, remained in focus after reporting stronger-than-expected earnings and issuing robust guidance. However, shares seesawed throughout the session, reflecting concerns over slowing revenue growth compared to earlier quarters. Nvidia shares finished 0.5% higher.
Other tech names experienced mixed outcomes. Amazon slid nearly 3%, Meta Platforms dipped 1%, and Alphabet dropped 6% as antitrust pressures mounted.
Snowflake defied the broader trend, surging 30% after exceeding Wall Street expectations and raising its revenue guidance.
Meanwhile, Bitcoin briefly crossed US$98,000, setting a new record as optimism about favourable cryptocurrency regulations under a second Trump presidency buoyed digital assets.
On the bond markets, 10-year and 2-year rates were higher at 4.422% and 4.347%.