Wall Street ends higher as investors buy AI stocks; Microsoft rallies

Fresh updates from the financial markets indicate that Wall Street ended elevated on Friday, lifted by Microsoft ​and other AI-related technology stocks, while high crude prices and a recent surge in US Treasury yields kept market participants on ‌edge.

Upside in the S&P 500 and Nasdaq capped a volatile week fuelled by uncertainty around what industries will win and lose from artificial intelligence, and by concerns around the US war with Iran and a surge in US Treasury yields.

Microsoft rallied 3.7%, lifting its 2026 gain to 7%, after the software giant unveiled several new capabilities in ​its Copilot app, including a coding tool and an always-on AI agent.

Chip maker Qualcomm advanced 4% and Dell advanced 5%.

Akamai Technologies ​rallied 3.2% after an $11.6 billion cloud services deal with AI leader Anthropic. The deal includes a warrant that could give ⁠Anthropic up to 5% of Akamai.

"That's a positive from the standpoint that people are still investing, deals are still being done," stated Thomas ​Martin, senior portfolio manager at Globalt Investments in Atlanta. "It's another circular deal, so OK … but Akamai stock is up."

Meta Platforms dipped 3.3%. The social media ​firm's stock soared around 13% the current week amid a firm reception to its Muse AI agent, which market watchers say could benefit tech infrastructure stocks, while challenging banks, online shopping platforms and other consumer businesses.

The S&P 500 advanced 0.51% to end the session at 7,743.41 points.

The Nasdaq advanced 0.48% to 27,068.72 points, while the Dow Jones Industrial Average ​rose 0.93% to 51,828.62 points.

Seven of the 11 S&P 500 sector indexes rose, led by information technology, up 0.91%, followed by a 0.6% gain ​in industrials.

The S&P 500 advanced 1.2% for the week, while the Nasdaq rose 2% for the week after it notched a record-high close on Tuesday.

The S&P 500 ‌this ⁠week has traded just under 19 times anticipated earnings, its lowest valuation since 2023, according to LSEG data. AI-related heavyweights are responsible for much of the recent gain in earnings expectations.

A report that US and Iranian negotiators continued to explore a phased path out of the war, which would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade, helped market sentiment.

Data additionally revealed firm AI-related capital expenditures boosted demand for ​key manufactured capital goods, outpacing expectations in ​August.

Brent crude eased but remained above $100 a ⁠barrel. The yield on the benchmark US 10-year Treasury note hit a fresh 19-year high and was last up 3.4 basis points at 5.196%.

Traders see a 66% chance of the The US central bank increasing interest rates by ​at least 25 basis points in October, up from around 50% earlier the current week, the CME Group's FedWatch ​Tool revealed.

US President ⁠Donald Trump stated he had a "very productive meeting" with President Xi Jinping, following a three-day summit that showcased personal diplomacy rather than big breakthroughs in economic relations.

Magazine publisher People Inc jumped 11% after a note stated MGM Resorts International was discussing a bid for the firm.

Volume on US exchanges was relatively light, with ⁠14.9 billion ​shares traded, compared with an average of 16.8 billion shares over the previous 20 ​sessions.

Advancing issues outnumbered falling ones within the S&P 500 (.AD.SPX), opens new tab by a 1.9-to-one ratio.

The S&P 500 posted three new highs and 31 new lows; the Nasdaq recorded 54 new highs and ​175 new lows.