Major Indexes Rise as AI Stocks Extend Recent Rally

U.S. stocks rose in early trading on Friday as tech stocks continued to rally on renewed optimism about the AI data center buildout.

The tech-heavy Nasdaq Composite rose 0.5% shortly after markets opened on Friday, while the benchmark S&P 500 advanced 0.3% and the blue-chip Dow Jones Industrial Average ticked up 0.2%. The major indexes broke two-day losing streaks yesterday after strong results from chipmaking giant Taiwan Semiconductor Manufacturing Co. (TSM) and the announcement of a trade deal between the U.S. and Taiwan.

AI stocks continued to climb on Friday, with memory and data storage device makers leading the charge. Shares of Micron (MU), Sandisk (SNDK), and Seagate Technology (STX) were all up about 4% or more before the opening bell. Meanwhile, shares of power providers Constellation Energy (CEG) and Vistra (VST) declined amid reports the Trump administration plans to make an announcement today related to the strain data centers are putting on electricity grids, raising uncertainty for utilities investors.

Treasury yields were slightly higher Friday morning. The yield on the 10-year Treasury, which impacts interest rates on a variety of consumer loans including mortgages, was recently 4.19%, up from 4.18% at yesterday’s close. Treasury yields are flat for the week, with concerns about the independence of the Federal Reserve offsetting this week’s slightly better-than-expected inflation report.

Regional banks capped off the first week of fourth-quarter earnings season. Shares of PNC Financial (PNC) rose after the lender reported better-than-expected results driven by strong dealmaking and advisory fee growth. Regions Financial (RF) stock slipped after it posted disappointing results and guidance.

Oil futures rose on Friday, with the price of West Texas Intermediate, the U.S. benchmark, rising 1.5% to $60.05 a barrel. Gold, which hit a record high earlier this week, was down 0.4% at $4,610 an ounce. Silver prices dropped sharply after a major run-up this week.

Bitcoin was little changed at $95,700, slightly off its highs from earlier in the week. The U.S. dollar index, which tracks the value of hte greenback against a basket of global currencies, dipped 0.1% to 99.25.