US sharemarkets surged on Friday as investors stepped back into risk assets, snapping a sharp sell-off in technology stocks and stabilising sentiment after a turbulent week. The Dow Jones Industrial Average jumped 1,206.95 points, or 2.47%, to close at 50,115.67, the first time the index has finished above the 50,000 mark. The S&P 500 rose 1.97% to 6,932.30, while the Nasdaq Composite advanced 2.18% to 23,031.21. The rebound lifted the S&P 500 back into positive territory for 2026.
Weekly picture still mixed
Despite Friday’s rally, the week as a whole remained uneven. The S&P 500 edged down 0.1% over five sessions, while the Nasdaq fell 1.8%, reflecting earlier heavy selling in large-cap technology. The Dow outperformed, gaining 2.5% for the week as investors rotated into more economically sensitive stocks, cushioning losses elsewhere.
Tech leaders bounce, software lags
Semiconductor stocks led Friday’s recovery, with Nvidia rising nearly 8% and Broadcom up 7% after steep declines earlier in the week. Oracle and Palantir Technologies also rebounded by about 4% each as investors revisited some beaten-down names. In contrast, parts of the software sector remained under pressure, with ServiceNow continuing to lag amid concerns about competitive disruption tied to artificial intelligence.
Rotation into value supports Dow
Beyond technology, buying flowed into industrials and financials, reinforcing the Dow’s strength. Caterpillar climbed 7%, while Goldman Sachs gained 4%. Small-cap stocks also benefited from the shift in sentiment, with the Russell 2000 index rallying 3.6%, signalling broader participation in the rebound.
Bitcoin stabilises after sharp sell-off
Bitcoin also recovered, rising about 10% on Friday to a session high near US$71,458 after briefly dipping below US$61,000 overnight. Even so, the cryptocurrency remains down 16% for the week and more than 50% below its October 2025 peak, underscoring lingering volatility across speculative assets.
Amazon weighs on the market
One notable outlier was Amazon, which fell more than 5% after reporting earnings per share slightly below expectations and flagging plans for roughly US$200bn in capital expenditure this year.
Australian sharemarket outlook
Australian shares are expected to rebound sharply on Monday, tracking Wall Street’s relief rally. Futures indicate the S&P/ASX 200 will rise 102 points, or 1.2%, to around 8,749 at the opening bell, following Friday’s 2% slump, the market’s worst session since the tariff-driven sell-off last April.
Attention this week will focus on earnings from major blue chips, including CSL, Commonwealth Bank and James Hardie. The reporting calendar begins on Monday with results from CAR Group.
