Tech Strength Powers Stock Market to New Heights, Crypto Rebounds with Bitcoin Surge

Markets experienced a robust Friday session as technology stocks led the charge across major indices. The S&P 500 finished +0.88%, while the Nasdaq 100 delivered stronger performance with a +1.31% advance. The Dow Jones added +0.38%, with futures mirroring the strength—March E-mini S&P contracts climbed +0.87% and March E-mini Nasdaq futures gained +1.28%.

Cloud and Chip Stocks Drive the Rally

The primary catalyst came from cloud infrastructure names, which posted impressive rebounds after recent sector weakness. CoreWeave surged more than +23%, Applied Digital gained +16%, and Nebius Group climbed over +15%. This momentum extended to software giant Oracle, which jumped more than +7% following CEO Chew’s announcement of binding agreements for a U.S. joint venture backed by American investors, including Oracle itself.

Semiconductor strength proved equally supportive for the broader market. Micron Technology led Nasdaq 100 gainers with a +7% advance, while Advanced Micro Devices climbed more than +6%. Nvidia gained over +3%, Broadcom added more than +3%, and Lam Research advanced over +4%. Additional chip names including NXP Semiconductors, Intel, Microchip Technology, Applied Materials, ASML Holding, and GlobalFoundries all posted gains exceeding +1%.

Cryptocurrency Exposure Lifts Digital Asset Plays

Bitcoin demonstrated resilience with a +2% advance, reaching $88.90K with a 24-hour gain of +0.97%. This strength translated to crypto-linked equities, as Riot Platforms gained more than +8%, Galaxy Digital Holdings climbed more than +6%, and Marathon Holdings advanced over +4%. MicroStrategy posted more than +3% gains, while Coinbase Global added over +2%.

Economic Data Mixed as Holiday Trading Approaches

Friday’s economic releases presented contradictory signals. U.S. November existing home sales rose +0.5% month-over-month to a 9-month high of 4.13 million units, though this came in slightly below expectations of 4.15 million. However, the University of Michigan December consumer sentiment index disappointed with a downward revision of -0.4 to 52.9, missing expectations for a 53.5 reading. The same survey showed 1-year inflation expectations unexpectedly increased to 4.2% from the previously reported 4.1%.

Fed Rhetoric Supports Risk Assets

New York Fed President John Williams delivered upbeat commentary, noting that recent economic data appears “pretty encouraging” and displaying no signs of sharp deterioration in employment figures. Williams projected U.S. GDP growth of 1.5% to 1.75% for the year ahead, with acceleration expected subsequently. His statement that “there’s no urgency to need to act further on monetary policy right now, because the cuts we’ve made have positioned us really well” provided support for equity investors.

Markets are currently pricing in just a 22% probability of a 25 basis point rate cut at the January 27-28 FOMC meeting.

Bond Markets Under Pressure

The 10-year Treasury note yield climbed +2.7 basis points to 4.149%, pressuring Treasury prices as the equity rally reduced safe-haven demand. International developments added headwinds, particularly Japan’s 10-year government bond yield surging to a 26-year high of 2.025% following the BOJ’s rate increase and hawkish forward guidance. This jump negated Treasury support from steepening dynamics and inflation concerns.

European sovereigns also faced selling pressure. Germany’s 10-year bund yield rose to a 9-month high of 2.899%, gaining +4.6 basis points, while the UK’s 10-year gilt yield climbed +4.3 basis points to 4.524%. The ECB appears in no rush to ease, with swaps showing 0% probability of a -25 basis point cut at February’s policy meeting.

Triple Witching Adds Volatility Component

Friday’s price action was amplified by the quarterly options, futures, and derivatives expiration event known as triple witching. Citigroup data revealed a record $7.1 trillion in notional open interest rolling off the U.S. options market, creating potential for exaggerated moves and elevated volatility.

Individual Stock Movers

Beyond tech winners, cruise operators displayed strength. Carnival led S&P 500 gainers with a +9% jump following better-than-expected Q2 adjusted EPS of 34 cents versus consensus of 24 cents. Norwegian Cruise Line Holdings gained more than +6%, and Royal Caribbean advanced over +2%.

Elsewhere, Whitefiber advanced more than +18% after announcing a 10-year, 40-megawatt co-location agreement representing approximately $865 million in contracted revenue. FactSet Research Systems climbed more than +5% following a double upgrade to overweight, while Amphenol gained over +4% on a raised price target.

Declines were led by Lamb Weston, which fell more than -25% after issuing disappointing full-year guidance of $6.35 billion to $6.55 billion, below consensus expectations. Nike dropped more than -10% citing persistent China weakness and negative Q3 guidance. Homebuilder KB Home declined more than -8% after weaker Q4 results and 2026 revenue guidance below consensus.

Global Markets Close Higher

International markets reflected the positive tone, with the Euro Stoxx 50 finishing +0.32%, China’s Shanghai Composite climbing to a 1-week high with a +0.36% gain, and Japan’s Nikkei Stock 225 advancing +1.03%.