U.S. stocks increased on Friday, driven by Oracle, as artificial intelligence trading recovered its stability following a volatile trend.
The Nasdaq Composite surged 1.31 percent, ending at 23,307.62. The S&P 500 increased 0.88 percent to end at 6,834.50; therefore, the Dow Jones Industrial Average advanced 183.04 points, or 0.38 percent, and settled at 48,134.89. All three indices had succeeded in a second consecutive winning day.
Oracle shares went up 6.6 percent after TikTok agreed to sell its U.S. operations to a new joint venture, which involves the software giant and private equity investor Silver Lake.
The jump is a reversal of the stock, which faced pressure this week following a report that the cloud infrastructure company had lost one of the sponsors of one of its data center projects due to concerns about the debt and AI spending rates of the company. That pulled down other shares associated with AI, such as Broadcom and Advanced Micro Devices.
As per the reports by Reuters, which stated that people familiar with the matter indicated that the shares of AI chip giant Nvidia surged by approximately 4 percent following, Trump administration is considering the possibility of the company selling its advanced AI chips to China.
Therefore, earlier this month, President Donald Trump stated that he would permit Nvidia to ship its H200 AI chips to “approved customers” in the country. The Micron Technology shares increased their profits in the last session and increased by about 7 percent.
The stock shot 10 percent on Thursday, following solid forecasts of revenues in the current quarter by the company, which gave comfort to investors after the preceding sessions were riddled with jitters over the AI trade.
Senior Portfolio Strategist of RBC Wealth Management, Tom Garretson, informed CNBC that “The kind of onslaught of issuance from some of the hyperscalers, some of the AI trades, could weigh on markets into 2026. But again, these are kind of some of the best-rated companies in terms of credit qualities. They obviously have the capacity to ramp up debt to finance some of this stuff.”
He added that “We’re still counting on some of the capex spend kind of supporting a broader or probably better growth backdrop.”
This follows the S&P 500 and the Dow breaking their four-day downward streaks in the last session. With Friday’s shift, the broad-based index surged 0.1 percent, while the Nasdaq advanced 0.5 percent. The Dow had dropped to 0.7 percent.
Nike is one of the losers of the day as the shares fell by 10.5 percent following the announcement of an 11.5 percent drop in the revenue of the sports apparel giant in its Greater China market in its fiscal second quarter. The company is also concerned about the tariff increases, citing a hit to its gross margins due to the levies.
