Finance

Tech shares experienced a positive turnaround following a sharp sell-off earlier in the week that saw the Nasdaq plummet 1.3% in a single session. Fears of an artificial intelligence market bubble, sparked by reports questioning OpenAI's projected annualized revenue, began to dissolve as investors reassessed the tech segment. Despite Nvidia edging slightly lower, nine out of eleven S&P 500 sectors ultimately finished the day in positive territory.

Long-dated U.S. Treasury yields and global oil prices stabilized on Friday, offering much-needed relief to the equity landscape. Although the 10-year Treasury yield edged slightly higher to close near 5.24%, the broader cooling of fixed income and energy market volatility helped support the late-week stock rebound. Tensions remain elevated, but the brief retreat from recent multi-decade bond yield highs gave investors breathing room.

A preliminary report from the University of Michigan highlighted mounting concerns regarding long-term living costs, with U.S. consumers raising their one-year inflation forecasts to 4.7%. The data reflected a sharp divergence in sentiment, particularly hitting lower-income individuals who lack substantial exposure to the stock market. Concurrently, domestic weekly jobless claims fell to 197,000, signaling continued strength in the labor market.