AI optimism lifts US stocks as oil price and yield worries linger
US equities rose modestly on Friday as AI enthusiasm offset concerns over high oil prices and climbing Treasury yields, with tech shares leading the gains.
Wall Street opened modestly higher on Friday, with the Dow Jones up 0.44%, the S&P 500 up 0.29% and the Nasdaq gaining 0.41%, as AI-related optimism countered fears of higher oil prices and climbing Treasury yields. Microsoft led the rally after unveiling new capabilities in its Copilot app, while chipmakers Micron and Marvell also rose and Nvidia held steady. Oil hovered above $100 a barrel and the 10-year Treasury yield sat at 5.1%, keeping inflation concerns alive amid ongoing Iran and Ukraine conflicts.
A report that US and Iranian negotiators were discussing a phased exit from the war boosted sentiment, though the market remains wary of rising debt and potential Fed rate hikes. Akamai jumped 8% after announcing an $11.6 billion cloud deal with Anthropic, and MGM Resorts was rumored to be eyeing an online-services acquisition. Overall, technology was the only sector to post a weekly gain, offsetting declines in most other S&P 500 groups.
Why it matters
Shows how AI hype can sustain equity markets despite oil and inflation pressures.
How this story developed
- Sep 2 Diesel hits $5.68 per gallon, highest since 2022, as Trump urges price cuts
- Sep 17 In its first rate increase since 2023, the Fed lifted the policy rate by a quarter point to a 3.75-4.00% range, with every governor supporting the decision. Market participants interpret the action as a more hawkish stance, prompting concerns for rate-sensitive assets such as small-cap stocks. The lack of clear forward guidance from new chair Kevin Warsh adds to uncertainty, while forecasts point to at least one additional hike this year and a pause in 2027.
- Sep 17 The Federal Reserve lifted its policy rate by a quarter point, its first increase in three years.
- Sep 18 Asian equities rose on Friday while the yen slipped, as oil prices fell and investors eyed the Bank of Japan’s upcoming rate hike.
- Sep 18 The Sejm voted to pass the extraordinary‑profits tax on fuel companies.
- Sep 19 Diesel prices reached $5.68 per gallon, the highest figure since 2022.
- Sep 20 The Fed implemented a modest rate increase and a hawkish tone from the new chair.
- Sep 20 Oil benchmarks rose on Monday following a missile and drone attack by Yemen’s Iran-backed Houthis on Saudi Arabia’s capital Riyadh.
- Sep 22 Oil prices fell and AI data demand boosted semiconductor stocks, reversing earlier concerns about oil‑driven market pressure.
- Sep 22 AMD’s market value reached $1 trillion.
- Sep 24 Iran’s president publicly rejected any surrender to the United States at the UN.
- Sep 25 Refinery output shifts and refinery strikes have created a measurable shortfall in bunker‑fuel supply for the third quarter.
- Sep 25 Bond yields climbed back above 5% and oil prices rebounded, pushing Wall Street lower.
- Sep 25 US stock futures rose on Friday as Treasury yields slipped and Brent crude fell to $98.83 a barrel.
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