US stocks opened higher on Friday, with the Nasdaq Composite climbing 172 points and the S&P 500 up 0.35%, as oil prices retreated and artificial intelligence-related shares stabilized after a volatile session. The Dow Jones Industrial Average also traded up 0.24%.
The gains followed two consecutive losing sessions for major indexes, driven by concerns over the AI investment outlook and rising energy costs. Investors are now looking ahead to the third-quarter earnings season, with major banks set to report next week.
Oil Retreats as Middle East Tensions Ease
Oil prices fell after President Donald Trump said the US would not attack Iran before next month's midterm elections, reducing fears of further supply disruptions. Brent crude declined more than 1% but remained above $100 a barrel. The 10-year US Treasury yield held steady at 5.25%, near the 24-year high of 5.37% reached earlier this week.
Elevated oil prices have stoked inflation concerns and raised the possibility of additional Federal Reserve rate hikes. The S&P 500 was on track to gain about 0.6% for the week, while the Dow and Nasdaq were roughly flat. The equal-weighted S&P 500 was also poised to end a seven-week losing streak.
AI and Chip Stocks Recover After OpenAI Revenue Report
Technology and semiconductor stocks moved higher in Friday's trading, recovering from Thursday's sharp declines. OpenAI told investors that its annualized revenue reached approximately $50 billion at the end of September, below the $68 billion figure widely reported last month. The earlier estimate reportedly included gross revenue from partners, complicating comparisons.
The update triggered a sell-off in AI-linked stocks, with the Nasdaq Composite falling more than 1% on Thursday. Investors remain concerned about the scale of debt and equity financing required to support AI infrastructure spending. On Friday, Nvidia shares rose 0.47%, Tesla gained 2.63%, and Amazon and Alphabet edged higher. The iShares Semiconductor ETF advanced 0.78%, while Lumentum shares gained 7% and KLA rose 2%.
SpaceX Spectrum Deal Pressures Telecom Stocks
SpaceX shares climbed 2.9% after the company agreed to acquire a nationwide low-band spectrum portfolio, strengthening its position in mobile connectivity through its Starlink satellite network. The deal raised concerns about increased competition for established US wireless operators. T-Mobile US shares fell 9%, AT&T declined 7.7%, and Verizon slipped 6.3%.
Other notable movers included Humana, which gained 16% after government data showed that 95% of its Medicare Advantage members were enrolled in plans rated four stars or higher for 2027. Apple shares fell 2.5% following a report that the company had asked some suppliers to reduce production of components for its newly launched iPhone 18 Pro models amid rising memory-chip costs and concerns about consumer demand. Delta Air Lines dropped 2.43% after lowering its annual profit forecast, citing fuel costs that were outpacing gains from fares.
This article is for informational purposes only and does not constitute financial advice.
