Markets closed higher Friday as investors shrugged off inflation concerns and focused on positive corporate earnings signals heading into the weekend. The S&P 500 gained 1.2% to 6,485, while the Nasdaq outperformed with a 1.6% jump to 19,200 as technology names led the advance. The Dow Jones added 0.8% to finish at 46,850.
NVIDIA powered the tech rally with a 4.8% surge after reports of accelerating data center orders from major cloud computing companies. The AI chip leader's gains lifted semiconductor peers, with Advanced Micro Devices and Broadcom also posting solid advances. Meanwhile, financial stocks contributed to the broad-based rally as traders positioned for potential Federal Reserve policy shifts.
Energy shares provided additional support despite crude oil retreating from recent highs, with Chevron and ExxonMobil posting modest gains. However, healthcare names lagged as Pfizer tumbled 3.2% following disappointing pipeline developments that raised questions about future growth prospects.
The VIX fear gauge dropped to 18.5, reflecting reduced anxiety as the week concluded. Gold held steady around $2,385 as investors balanced inflation hedging against risk-on sentiment flowing into equities.