Oracle deal lifts major indexes
U.S. stocks closed higher on Friday as renewed confidence in artificial intelligence related shares helped markets recover from recent volatility. The Nasdaq Composite led gains, rising 1.31 percent, while the S&P 500 advanced 0.88 percent and the Dow Jones Industrial Average added 183 points.
A major driver of the rally was Oracle, whose shares jumped 6.6 percent after TikTok agreed to sell its U.S. operations to a new joint venture that includes the software company and private equity firm Silver Lake.
AI stocks regain momentum
Oracle’s surge marked a sharp reversal after the stock had faced pressure earlier in the week, when concerns emerged over debt levels and heavy artificial intelligence spending tied to its data center ambitions. Those worries had weighed on the broader AI sector and contributed to recent market jitters.
Confidence returned across the space on Friday. Shares of Nvidia rose about 4 percent after reports indicated the Trump administration is reviewing whether the company could sell advanced AI chips to China. Earlier this month, President Donald Trump said Nvidia would be allowed to ship certain high end chips to approved customers.
Micron extends gains on strong outlook
Micron Technology also extended its rally, climbing roughly 7 percent. The stock followed a 10 percent jump a day earlier, sparked by upbeat revenue guidance that reassured investors after weeks of uncertainty around the AI trade.
Tom Garretson of RBC Wealth Management said markets may still face pressure from heavy capital spending and debt issuance by major technology players. However, he noted that many of these firms remain among the strongest in terms of credit quality and have the capacity to finance expansion.
Nike slides despite broader rally
Not all stocks shared in the gains. Nike fell more than 10 percent after reporting weaker revenue in its Greater China business during the fiscal second quarter. The company also warned that higher tariffs are weighing on its profit margins.
Despite Nike’s decline, the broader market ended the week on firmer footing, with investors once again leaning into artificial intelligence and technology leaders as a source of growth.
