Wall Street closed out the week on a bullish note Friday, with technology stocks leading a broad rally even as investors digested mixed economic data and escalating tensions in the Middle East. The NASDAQ surged over 2% amid what analysts are calling a ‘changing of the guard’ in the artificial intelligence sector, while geopolitical headlines involving Iran kept energy markets on edge.
Market Performance: Tech Takes the Spotlight
The NASDAQ (QQQ) was the clear winner of the session, jumping +2.34% to close at $711.23. The tech-heavy index benefited from a dramatic rotation within the semiconductor space, as investors piled into Intel and AMD shares while longtime AI darling Nvidia lagged behind.
The S&P 500 (SPY) gained +0.83% to finish at $737.62, marking a solid end to what has been a volatile week of trading. Meanwhile, the Dow Jones (DIA) barely budged, inching up just +0.04% to $496.13, weighed down by mixed performance among industrial and financial components.
Headlines surrounding a potential Apple deal to acquire Intel chips added fuel to the semiconductor rally, raising questions about the future architecture of iPhones and reigniting speculation about strategic shifts among tech giants. As one trader put it, “The AI trade isn’t dead—it’s just finding new leaders.”
Economic Data: Growth Slows, Inflation Heats Up
Friday’s economic releases painted a complicated picture for policymakers and investors alike. The U.S. GDP Growth Rate came in at 0.9% quarter-over-quarter, missing the 1.5% forecast but improving from the prior quarter’s 0.6% reading. Year-over-year growth registered at 2.8%, also below the expected 3.5%.
Perhaps more concerning was the inflation data. The monthly inflation rate accelerated to 0.47%, more than double the previous month’s 0.22% reading. Year-over-year inflation climbed to 5.3%, up sharply from 4.5% in, signaling that the Federal Reserve’s fight against rising prices is far from over.
On the labor front, there was a silver lining: the unemployment rate ticked down to 3.0% from 3.1%, suggesting the job market remains resilient despite slower growth. Global readings were mixed, with various economies reporting unemployment rates ranging from 2.8% to 4.8%.
The Balance of Trade delivered a significant surprise, swinging to a deficit of -$1.841 billion against expectations of a $4.25 billion surplus. This marked a sharp reversal from last month’s $5.026 billion surplus and could add pressure to the dollar in coming sessions.
Earnings Roundup: Big Beats and Painful Misses
Corporate earnings season continued with a flurry of reports, producing some standout performances alongside notable disappointments:
- GLP delivered the day’s biggest surprise, posting EPS of $1.85 versus estimates of just $0.33—a massive beat that sent shares higher.
- ANI Pharmaceuticals (ANIP) reported EPS of $2.05, crushing the $1.33 consensus estimate.
- AngloGold Ashanti (AU) beat expectations with EPS of $2.52 versus the $2.32 forecast, benefiting from elevated gold prices.
- Interface Inc. (TILE) surprised to the upside with EPS of $0.41, ahead of the $0.34 estimate.
- Strawberry Fields REIT (STRW) more than doubled expectations, posting $0.34 versus $0.15.
On the downside, several companies struggled to meet Wall Street’s bar:
- TeraWulf (WULF) posted a loss of -$0.44 per share, far worse than the -$0.18 expected, as Bitcoin mining economics remain challenging.
- AMC Networks (AMCX) disappointed with EPS of just $0.08 versus $0.22 expected.
- Ultralife Corporation (ULBI) swung to a loss of -$0.03 against expectations of a $0.16 profit.
Geopolitical Watch: Iran Tensions Escalate
Energy markets remained on alert as U.S. forces struck two empty Iranian oil tankers, according to Central Command. Iran responded by seizing the oil tanker Ocean Koi in the Gulf of Oman, while satellite images revealed a suspected oil spill near Iran’s critical Kharg Island export hub. Secretary Rubio’s questioning of allied support following Italy talks added diplomatic uncertainty to an already tense situation.
Looking Ahead
As investors head into the weekend, all eyes turn to next week’s developments. The upcoming U.S.-China meeting and potential Iranian responses will likely dominate headlines. With inflation running hot and growth cooling, the Federal Reserve faces an increasingly difficult balancing act. For now, the tech sector’s rotation suggests investors remain optimistic about AI’s future—even if the winners and losers are being reshuffled.
Stay tuned for Monday’s briefing as we track these developing stories.
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