US stocks today: Wall Street rebounds as tech equities recover, bitcoin steadies

File photo: Traders work on the floor of the New York Stock Exchange (Picture credit: AP)

US stock markets moved higher on Friday, clawing back part of the heavy losses seen earlier in the week, as technology shares recovered and bitcoin halted its recent slide. The rebound came after several volatile sessions driven by worries over massive spending on artificial intelligence and its impact on corporate profits.The S&P 500 rose 0.9 per cent, marking only its second gain in the past eight sessions. The Dow Jones Industrial Average jumped 776 points, or 1.6 per cent, while the Nasdaq Composite was up 0.5 per cent by mid-morning trading in New York.Chipmakers led the recovery. Nvidia climbed 4.9 per cent, trimming a weekly decline of more than 10 per cent, while Broadcom gained 3.8 per cent after falling sharply earlier in the week. According to news agency AP, hopes of strong long-term demand for chips linked to artificial intelligence continued to support the sector.

AI spending worries hit Amazon

Despite the broader rebound, concerns over soaring AI investment remained. Amazon shares slumped 8.5 per cent after the company said it expects to spend around $200 billion this year on areas such as AI, chips, robotics and low-earth-orbit satellites. Similar spending plans announced earlier by Alphabet have raised questions about whether such large investments will deliver enough future profits.As per news agency AFP, investors have grown cautious after a period when enthusiasm around AI lifted much of the technology sector. Chris Low of FHN Financial said markets were now reassessing whether the sell-off had gone too far, noting that traders felt some of the recent declines may have been “overdone”.Even with Friday’s gains, the S&P 500 was still on course for its third weekly fall in four weeks.

Bitcoin stabilises, crypto stocks jump

Bitcoin showed signs of stabilising after weeks of losses that wiped out more than half its value since its October peak. The cryptocurrency recovered to around $68,000 after briefly slipping near $60,000 late on Thursday.The move helped lift shares linked to the crypto sector. Robinhood Markets surged 11.7 per cent, Coinbase Global rose 7.3 per cent, and Strategy, a company known for holding large amounts of bitcoin, jumped 15.9 per cent.

Consumers, airlines and smaller stocks gain

US consumer sentiment also provided some support. A preliminary survey from the University of Michigan showed sentiment improving slightly, defying expectations of a fall. The improvement was strongest among households that own shares.Airline stocks gained on hopes that stronger confidence would translate into more travel spending. United Airlines rose 5.4 per cent, American Airlines gained 4.6 per cent, and Delta Air Lines added 4.4 per cent.Smaller companies outperformed larger peers, with the Russell 2000 index climbing 2.3 per cent. These firms tend to be more sensitive to the strength of the US economy.In the bond market, US Treasury yields were largely steady. The yield on the 10-year Treasury held at around 4.21 per cent, unchanged from late Thursday.