Wall Street Recovers as Apple, Tech Stocks Rebound/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Apple’s stronger-than-expected earnings helped lead a Wall Street rebound on Friday, trimming the week’s earlier losses. The S&P 500 rose 0.4%, nearly erasing its Monday drop, while the Nasdaq gained 0.9%. Tech stocks like KLA recovered as concerns over AI investments eased. Treasury yields remained steady after inflation data met expectations, bringing stability to the bond market. Meanwhile, Walgreens dropped 14.1% after suspending its dividend, and Exxon Mobil fell despite posting solid profits. Globally, European stocks rose, while Asian markets remained mixed, with Japan’s inflation surpassing its central bank’s target.
Stock Market Recovery: Quick Look
- S&P 500 rose 0.4%, paring early-week losses.
- Apple jumped 3.2%, leading the rebound after strong earnings.
- KLA gained 1.8%, recovering from Monday’s AI-related selloff.
- Treasury yields held steady, keeping pressure off stocks.
- Walgreens tumbled 14.1%, suspending dividends for the first time in 90 years.
- Exxon Mobil dipped 1.2%, despite better-than-expected profits.
- Japan’s inflation topped 2%, signaling potential interest rate hikes.
Wall Street Recovers as Apple, Tech Stocks Rebound
Stock Market Recovery: A Deep Look
Apple and Tech Stocks Drive Wall Street Comeback
After a rough start to the week, Apple’s strong earnings report helped turn the market around. The S&P 500 climbed 0.4%, the Nasdaq surged 0.9%, and the Dow Jones gained 87 points in early trading.
Apple’s 3.2% rise was fueled by record revenue from its services business, despite a decline in iPhone sales. Tech stocks, including KLA (+1.8%), also rebounded as fears of reduced AI-related investment faded.
Earlier in the week, AI stocks dropped after Chinese company DeepSeek claimed it developed a large language model without needing advanced AI chips. This raised concerns over future investments in AI hardware, dragging tech stocks lower. However, Friday’s gains suggest investor confidence is returning.
Bond Market Stability Helps Stocks Rebound
The 10-year Treasury yield dipped slightly to 4.51%, easing pressure on stocks. A key inflation measure preferred by the Federal Reserve met expectations, reinforcing hopes for stable interest rates.
Treasury yields have been climbing since September, as the U.S. economy remains stronger than expected. However, concerns over potential new Trump tariffs on Canada and Mexico continue to weigh on inflation expectations.
Major Movers: Walgreens Plunges, Exxon Mobil Slips
- Walgreens Boots Alliance plummeted 14.1% after suspending its dividend, ending a 90-year streak of quarterly payouts.
- Exxon Mobil dropped 1.2%, despite posting better-than-expected earnings from increased production in the Permian Basin and Guyana. However, revenue fell short of expectations, pressuring its stock price.
Global Markets: Mixed Performance
- European markets edged higher, reflecting optimism from the U.S. rebound.
- Japan’s Nikkei 225 gained 0.1%, as inflation topped 2%, increasing chances of a Bank of Japan rate hike.
- South Korea’s Kospi fell 0.8%, resuming trading after holidays.
- Hong Kong and Shanghai markets remained closed for Lunar New Year.
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