US stocks rose Friday as investors looked ahead to the start of third quarter earnings season next week. The Dow Jones Industrial Average gained about 423 points, or 0.83 percent, to close at 51,655. The S&P 500 added 0.59 percent to finish at 7,811, coming within striking distance of its record high, while the Nasdaq Composite rose 0.64 percent to close at 27,366. The Russell 2000 index of smaller companies gained about half a percent.
All four major indexes finished higher for the week, with the S&P 500 up roughly 1.15 percent over the five sessions, even though the week included a sharp Thursday pullback in technology shares after reports indicated OpenAI's annualized revenue was roughly 20 billion dollars lower than some investors had previously estimated. Friday's rebound came as oil prices eased from recent highs and Treasury yields pulled back slightly from multiyear peaks, giving growth stocks some room to recover.
Among individual movers, Datadog gained more than 7 percent on analyst support, while Akamai Technologies, Palantir Technologies and Palo Alto Networks each rose more than 5 percent. Optical networking company Lite also jumped after its chief executive said optical parts were completely sold out through early 2029, pointing to continued strong demand tied to AI infrastructure buildout. On the other side, Delta Air Lines shares fell after weaker earnings guidance, and the three major wireless carriers tumbled on the SpaceX spectrum news.
West Texas Intermediate crude settled at 91.85 dollars a barrel, up slightly on the day and for the week, while the 10 year Treasury yield rose two basis points to 5.24 percent but still ended the week below the prior Friday's level. The CBOE Volatility Index, a common gauge of market anxiety, eased to 14.84.
Next week's third quarter earnings reports from major banks and technology companies will be closely watched for signs of whether this week's volatility was a blip or the start of a bumpier stretch.
Why did stocks fall on Thursday before rallying Friday?
Reports that OpenAI's annualized revenue was lower than some investors had estimated triggered a technology sell-off Thursday, which eased on Friday as oil prices and bond yields pulled back.
Did markets finish the week higher or lower?
Higher. All four major US indexes, the Dow, S&P 500, Nasdaq and Russell 2000, ended the week with gains.