US stocks opened higher on Friday, extending a rebound driven by strong earnings from Amazon and Microsoft that reinforced confidence in artificial intelligence spending. The Dow Jones Industrial Average climbed 227 points, or 0.5%, while the S&P 500 gained 0.5% and the Nasdaq Composite advanced 0.8%.
Amazon shares jumped 11% after the e-commerce giant reported better-than-expected second-quarter revenue, supported by continued strength in its cloud computing business. The results followed Microsoft's robust earnings a day earlier, which had already sparked a broad rally in AI-linked stocks. Microsoft's Azure cloud growth exceeded expectations, lifting its shares 16% on Thursday and helping the iShares Semiconductor ETF surge more than 8%.
On Friday, semiconductor stocks continued to climb, with Nvidia, AMD, and Intel all trading higher. The iShares Semiconductor ETF was up around 5% in early trading. The positive momentum in tech was also reflected in AMD and Intel shares surging 13% following Microsoft's Azure results, as investors bet on sustained demand for AI infrastructure.
Apple, however, moved in the opposite direction, falling more than 9%. Although the company reported fiscal third-quarter revenue above expectations, helped by a 22% increase in iPhone sales, weaker-than-expected services revenue weighed on investor sentiment. The divergence highlights the market's focus on AI and cloud growth as key drivers of tech valuations.
Friday's gains built on Thursday's recovery after a sharp market decline earlier in the week. On Wednesday, the Dow suffered its worst one-day drop since April 2025, falling more than 1,100 points after the Federal Reserve left interest rates unchanged, raising concerns that policymakers may be falling behind inflation. The selloff also pushed Treasury yields higher, with the 30-year yield rising above 5.2%, near its highest level since 2007.
Despite the volatility, major US indexes were on track for weekly gains heading into Friday's session. The Dow was up about 0.5% for the week, the S&P 500 had gained roughly 0.4%, and the Nasdaq Composite was ahead around 0.6%.
Global markets also advanced on Friday. South Korea's Kospi surged more than 15% as Samsung Electronics and SK Hynix rallied sharply, while Japan's Nikkei 225 climbed more than 3%. China's CSI 300 gained 1.24%, although Hong Kong's Hang Seng Index edged 0.11% lower. European equities rose, with the pan-European Stoxx 600 up 0.8%, Germany's DAX and France's CAC 40 each gaining about 0.9%, and Britain's FTSE 100 and Italy's FTSE MIB also trading higher.
Investors continued to monitor developments in the Middle East after Iran's military said it had launched attacks on US military bases and strategic assets in Kuwait and Bahrain following the latest US strikes. Oil prices were mixed as signs that crude shipments through the Strait of Hormuz were recovering helped ease immediate supply concerns. West Texas Intermediate crude traded little changed at $83.61 a barrel, while Brent crude rose 0.4% to $89.40.
The latest earnings reports have reinforced confidence that major technology companies continue to benefit from robust demand for AI infrastructure and cloud services. As Microsoft's Q4 earnings beat driven by 43% Azure growth showed, the AI boom is translating into strong financial results, and investors are betting that this trend will persist.
This article is for informational purposes only and does not constitute financial advice.
