Tech Rally Powers Wall Street Gains

U.S. stocks closed higher on Friday, fueled by a surge in technology shares for the second consecutive session, sparking a fresh upward wave on Wall Street this week.

The rally was ignited by the semiconductor sector after Micron Technology, America’s largest memory chip producer, issued upbeat guidance for the current quarter. The company cited rising demand and tight supply, giving it room to raise prices. As a result, Micron’s stock jumped more than 14%, setting the tone for the broader market.

Earlier in the week, equities had stumbled amid concerns over reduced spending by artificial intelligence infrastructure firms, dragging indexes lower by Wednesday’s close. However, Micron’s positive outlook quickly restored investor confidence, reversing losses into gains within just one trading day.

Major indexes reflected the rebound: the S&P 500 climbed 0.7%, the Dow Jones Industrial Average added 0.6%, and the tech-heavy Nasdaq 100 advanced 1%. Nasdaq led the charge, buoyed by strong performances from big technology names.

Cloud infrastructure stocks also contributed to the upbeat mood. Oracle shares surged more than 7% after TikTok’s CEO announced a joint venture in the U.S. with American investors, including Oracle. Semiconductor strength further supported the rally, with Micron up over 6%, AMD gaining nearly 5%, and additional advances from Nvidia, Intel, and others.

Economic Data
Housing market figures showed U.S. home sales rising in November to 4.13 million units, the highest in nine months, though slightly below forecasts. Meanwhile, the University of Michigan’s consumer sentiment index fell to 52.9 in December, missing expectations, while one-year inflation expectations ticked up to 4.2%.

Seasonal Trends & Monetary Policy
Historical data from Citadel Securities suggests the S&P 500 has risen during the final two weeks of December in 75% of years since 1928, with an average gain of 1.3%—a seasonal trend that bolsters investor optimism.

Still, rising bond yields capped some of the stock market’s momentum. The U.S. 10-year Treasury yield climbed to 4.14%, while Japan’s 10-year government bond yield hit 0.3%, its highest level in 26 years, following the Bank of Japan’s decision to raise interest rates.