Wall Street makes comeback, Dow closes above 50,000 for first time Proactively use images from Shutterstock
Wall Street ended the week with an explosive move on Friday, led by a milestone moment for the Dow Jones Industrial Average.
The Dow Jones Industrial Average rose 1,207 points, or 2.5%, to close at 50,115, surpassing 50,000 for the first time in history. The S&P 500 rose 2% to 6,932 points, marking its best trading day since May last year; the Nasdaq rose 2.2% to 23,031 points, recovering from Thursday’s sharp losses. Small-cap stocks also joined the ranks, with the Russell 2000 index rising 3.6% to 2,670 points.
It’s a broad comeback for stocks after a choppy, troubling period. Advancing issues outnumbered declining ones by more than three to one, a clear sign that buyers are reentering the market with confidence.
“Call it a comeback,” said Adam Turnquist, chief technical strategist at LPL Financial. He noted that the S&P 500 rebounded sharply from its 100-day moving average and back above resistance near 6,900 as a technical victory after a volatile week of trading.
Tech companies, which have been a major source of pain lately, are finally getting a bid. After eight straight days of losses, software stocks rebounded as the sector approached key support near its November lows. Turnquist described Friday’s move as a “much-needed relief rally,” though he warned that the broader tech sector remains range-bound until it can decisively break above its December highs.
Still, the Dow Jones stole the show. The index’s move above the 50,000-point mark clears a major psychological hurdle, a move that carries additional weight. Turnquist noted that the simultaneous all-time high in the Dow Transport Index confirmed the breakout, fulfilling key Dow Theory signals reinforcing the bullish case.
The big question now is whether tech stocks can sustain their rally. Turnquist said re-engagement from the sector, especially software, could be crucial if the S&P 500 wants to sustain a run at the 7,000 level.
For now, though, investors remain motivated heading into the weekend and have a brand new milestone etched in the Dow’s history books.
Bit Digital reported Ethereum vault and staking metrics for January, revealing that it held approximately 155,239.4 Ethereum as of January 31.
Etana Energy has signed a 10-year deal to supply 220 megawatts of renewable energy per year to Sibanye-Stillwater’s South African mines, a milestone for Chariot, which owns a 34% stake in the energy trader.
Terrain Minerals has highlighted drilling success at its Smokebush gold-silver project, with more than 100 holes drilled at Lightning Prospect, supporting progress towards a maiden JORC resource estimate by mid-2026.
AuMEGA Metals said the market was undervaluing its Cape Ray project, citing existing gold resources of approximately 610,000 ounces and strong near-surface exploration potential adjacent to the operating mine.
Despite solid performance from its AWS and retail businesses, Amazon.com Inc (NASDAQ: AMZN ) shares fell more than 7% after the earnings report as investors focused on a massive $200 billion capital spending plan and weaker-than-expected first-quarter profit guidance.
Reddit (NYSE: RDDT ) beat fourth-quarter earnings and revenue estimates and announced a $1 billion stock buyback, signaling confidence in its growth prospects.
Bit Digital Inc (NASDAQ: BTBT) reported that it held approximately 155,239 ether as of January 31, detailing its Ethereum vaults, staking activity, and stake in WhiteFiber.
MicroStrategy Incorporated (NASDAQ: MSTR ) (Strategy) shares rose after quarterly revenue beat estimates, with growth in its software and subscription businesses offsetting a large Bitcoin-related accounting loss.
Stellantis NV (NYSE: STLA, EPA: STLA ) shares plunged 25% after the automaker spent 22.2 billion euros to scale back its electric vehicle program and refocus on hybrid and gasoline-powered vehicles.
Fortinet Inc (NASDAQ: FTNT ) beat fourth-quarter revenue and earnings estimates, sending shares up about 3% in early trading.
Shares of Roblox Corp (NYSE: RBLX ) rose after the company reported a surge in pre-orders, users and engagement, along with a huge increase in revenue.
Under Armor Inc (NYSE: UA ) beat third-quarter profit estimates and raised its full-year forecast as cost cuts offset lower sales and tariff pressure.
Cryptocurrencies and precious metals are recovering from their recent sharp declines. Bitcoin and Ethereum have recovered after losing around 30% and over 40% of their value in recent weeks, while gold and silver have regained ground, with gold trading slightly higher.
“After a week of heavy selling, long-term holders are breathing a sigh of relief as cryptocurrencies such as Bitcoin have stopped selling as bargain hunters have banded together,” said Axel Rudolph, chief technical analyst at IG.
“Nonetheless, the past three weeks have wiped out around 30% of the value of the ‘blue chip’ cryptocurrency, briefly pushing it to close to the $60,000 mark before a rebound.”
U.S. consumer confidence rose to a six-month high in February, driven by strengthening household financial conditions and easing inflation concerns, a preliminary University of Michigan survey showed.
The index climbed to 57.3, beating expectations of 55 and marking its third consecutive monthly gain. Meanwhile, the median one-year inflation forecast fell to 3.5%, the lowest level since January 2025 and down from 4% last month.
Jeffrey Roach, chief economist at LPL Financial, noted that rising household equity, which is sensitive to market performance, is boosting optimism and supporting consumer spending. “The wealth effect remains a key factor influencing consumer expectations,” he said.
Roach added that while home buying remains mixed due to high mortgage rates, more Americans believe now is a good time to buy cars and major household items, indicating continued strength in spending.
“Consumers have largely moved past tariff concerns,” Roach said. “We expect real growth in the quarter to be close to 2.7%, with conditions remaining favorable as rising assets boost household finances.”
Deutsche Bank economists said yesterday’s U.S. labor force data showed weak growth, although the weakness was smaller and driven mostly by one-off factors such as weather and normalizing post-pandemic hiring.
Looking to 2026, the bank expects tighter immigration to lead to slower job growth, even as easing trade uncertainty and fiscal stimulus ease demand.
Deutsche Bank is bullish on sectors such as education and health, construction, and trade and transportation; has a negative impact on professional and business services due to the adoption of artificial intelligence; and is neutral on leisure and hospitality.
The bank expects nonfarm payrolls to rise by 45,000 in January, with private payrolls rising by 40,000 – lower than consensus estimates, in part due to possible revisions in birth-death models. The unemployment rate is expected to hold steady at 4.4%. Historical employment numbers will also be revised downwards, with March 2025 data likely to fall by 800,000-850,000, and monthly revisions from April 2025 to 20,000-30,000.
Wall Street kicked off the trading day with a rally as investors reassessed concerns about artificial intelligence disruption and big tech companies’ big spending plans, with technology stocks shaking off a week of hard lessons.
The Dow Jones rose 731 points, or 1.5%, to 49,640; the S&P 500 rose 71 points, or 1%, to 6,869. The Nasdaq rose 201 points, or 0.9%, to 22,742; the Russell 2000 led gains, rising 2.2% to 2,634.
Despite early gains, the S&P 500 and Nasdaq are still on track for weekly losses and are still in the red so far in 2026.
Bitcoin also rebounded above $68,000 after hitting a 16-month low overnight, although the cryptocurrency was on track for its worst week of 2022, erasing all gains since Trump’s election.
Technology company earnings remain in focus. Amazon shares opened down 9% after reports that spending would surge to at least $200 billion in 2026, although its operating income forecast missed expectations.
Meanwhile, Google is doing great. The company’s shares initially fell 7% after the earnings report, weighed down by huge spending plans of $175-185 billion in 2026. However, investors rushed to buy the bottom, causing the stock price to close only 0.6% lower than the opening price. “Google Cloud’s 48% growth is early evidence that its TPU chips can reshape the chip industry,” said Swissquote senior analyst Ipek Ozkardeskaya. “Starting with Apple, Gemini partnerships can also increase market share.”
Meanwhile, Stellantis alarmed investors by warning it would take a 22 billion euro ($26 billion) charge to scale back its electric vehicle ambitions. The Jeep maker’s shares plunged more than 25% at the open, making one of the day’s sharpest moves.
All eyes now turn to next week, with the closely watched January jobs report delayed from Friday to Wednesday, which could provide further direction for markets amid a volatile start to 2026.
U.S. stock futures were higher on Friday, recouping some of Thursday’s losses, despite pre-market volatility in Amazon shares.
Nasdaq futures were up 0.6%, S&P 500 futures were up 0.5% and Dow Jones futures were up 0.4% before the open. On Thursday, the Nasdaq fell 1.6%, weighed down by worries about tech giants and labor market weakness.
Alphabet’s 2026 capital spending plan is $175 to $185 billion, nearly double last year’s level, while YouTube’s revenue fell short of expectations despite a 13.5% increase in advertising. Google Cloud’s 48% growth went largely unnoticed.
Amazon fell more than 10% after hours despite sales rising 14% to $213 billion and AWS growing 26%. The culprit? The capital expenditure plan for 2026 is US$200 billion, which is US$50 billion higher than forecast. Neil Wilson of Saxo Markets calls it “the classic emperor’s new clothes – everything is fine until someone points out the obvious.”
Meanwhile, cryptocurrencies are in freefall, precious metals are weakening and fears of an artificial intelligence bubble have resurfaced as hyperscale companies ramp up spending amid uncertain returns.
AJ Bell’s Russ Mould commented: “It’s been a hell of a week for tech stocks as artificial intelligence spending plans rattled global markets and prompted investors to remove hyperscalers from their portfolios.”
“Amazon is following its peers and maxing out its AI spending, leaving investors stunned,” Mold added. “Hyperscalers are so confident that AI will change the world that they’re spending huge sums to lay the groundwork to meet the sky-high demand they predict. Investors are increasingly skeptical of spending levels, fearing these companies are wasting money.”
