Wall Street ends higher as investors buy AI stocks; Microsoft rallies
SPY•Wall Street ended higher, with the S&P 500 up 0.49%, the Nasdaq up 0.47% and the Dow up 0.91%. Microsoft rallied after unveiling new Copilot capabilities, while Akamai surged on an $11.6 billion cloud services deal with Anthropic.
1. AI stocks lift indexes
Microsoft and other AI-related technology stocks helped lift Wall Street on Friday, capping a volatile week. Microsoft rallied after unveiling new Copilot capabilities, including a coding tool and an always-on AI agent. Qualcomm and Dell advanced, while Meta dipped.
2. Akamai deal
Akamai Technologies surged after agreeing to an $11.6 billion cloud services deal with Anthropic. The deal includes a warrant that could give Anthropic up to 5% of Akamai.
3. Yields and oil weigh
High oil prices and a recent surge in Treasury yields kept investors on edge. Brent crude eased but remained above $100 a barrel, while the 10-year Treasury yield reached a fresh 19-year high and was last up 3.4 basis points at 5.196%. The S&P 500 traded just under 19 times expected earnings this week, its lowest valuation since 2023.
