U.S. stocks rallied on Friday following a tough week for technology shares. The Dow Jones Industrial Average surged nearly 2%, leading the advance, while the S&P 500 gained about 1.5% and the Nasdaq Composite climbed roughly the same amount as Wall Street attempted to stabilize after days of AI-related volatility.
Despite the rebound, the recovery was cautious. Both the S&P 500 and Nasdaq remained on track for weekly losses and were still negative for the year, highlighting how deeply recent concerns around artificial-intelligence spending and software disruption have shaken sentiment across growth stocks.
Market Movers:
- Lumen Technologies (LUMN) +18%: Shares jumped after the company’s CEO disclosed a sizable personal stock purchase, a move investors often interpret as a signal of confidence in future performance. The buying helped spark renewed interest in a stock that has struggled amid telecom sector uncertainty.
- CleanSpark (CLSK) +11%: Crypto-linked equities rebounded alongside a recovery in Bitcoin prices following a steep sell-off earlier in the week. The company’s push toward AI infrastructure capacity and a new share repurchase plan added further support to sentiment.
- Envista (NVST) +16%: Shares advanced after quarterly results topped expectations and forward guidance pointed to steady earnings and sales growth into 2026. Strong margin outlook and cash-flow conversion reinforced confidence in operational momentum.
- Dave (DAVE) +12%: The fintech firm climbed after reporting record preliminary quarterly revenue and EBITDA, capping what management described as the strongest year in company history. Investors responded positively to signs of sustained profitability and scale.
- Doximity (DOCS) -26%: Shares plunged despite solid quarterly results as weak forward guidance raised concerns about slowing growth. A newly announced share buyback failed to offset investor disappointment around the outlook.
- Stellantis (STLA) -24%: The automaker tumbled after announcing a major reset of its electric-vehicle strategy, including selling its stake in a key battery joint venture. The move underscored mounting pressure across the global EV sector.
- Amazon (AMZN) -8%: Shares fell after mixed earnings highlighted heavy capital spending tied to artificial intelligence infrastructure. Investors focused on declining free cash flow and softer-than-expected operating-income guidance despite solid revenue growth.
AI Spending Debate Grows
At the center of market volatility is the enormous scale of planned AI investment by major technology firms. Collectively, the largest hyperscalers are expected to spend well over half a trillion dollars on chips, servers, and data-center infrastructure this year alone; a dramatic jump from the prior year. Supporters argue this spending wave will define the next era of computing and ultimately flow into profits for infrastructure leaders. Skeptics counter that the timeline for returns remains unclear, leaving valuations vulnerable if growth fails to accelerate quickly.
Crypto Rebound Offers Limited Relief
Bitcoin staged a modest rebound after falling to multi-month lows earlier in the week, helping lift crypto-related stocks. Even so, the digital asset remained on pace for its worst weekly performance in years, reflecting fragile sentiment and heavy liquidation across leveraged positions. The uneven recovery highlights how closely crypto markets remain tied to broader risk appetite. Until volatility subsides, digital assets are likely to amplify, rather than counterbalance, swings in equities.
Consumer Mood and Labor Signals Remain Fragile
Fresh economic data painted a mixed picture. Consumer sentiment improved slightly from the prior month but remained historically weak, with households still concerned about inflation, job security, and personal finances. At the same time, recent labor-market indicators have pointed to cooling demand for workers. Investors are now awaiting the delayed January jobs report, which could shape expectations for interest rates and economic momentum in the months ahead.
Looking Ahead
Friday’s rebound suggests investors are willing to selectively reenter risk assets after the recent sell-off, but confidence remains tentative. The path forward will depend heavily on whether massive AI spending begins translating into measurable earnings growth — and whether economic data confirm resilience rather than slowdown. With volatility still elevated across stocks, crypto, and commodities, markets appear poised for continued sharp swings as investors search for clarity in the next phase of the AI-driven cycle.