Technology stocks led weekly gains as optimism about AI and semiconductor demand pushed indexes higher, while surging Treasury yields and oil price swings limited the upside and pressured rate-sensitive areas of the market.
10-year Treasury yields approached 5.15%, the highest since 2007, restraining the rally and pressuring small caps and financials.
Economic data showing solid private-sector growth and low initial jobless claims reinforced expectations of higher-for-longer interest rates.
# What happened this week
# Market moves and key numbers Average rose 0.28% for the week to 51,828. The S&P 500 gained 1.21%, closing at 7,743. The Nasdaq Composite climbed 2.06%. The small-cap Russell 2000 fell 0.8%, the weakest performer, reflecting sensitivity to higher interest rates.
Treasury yields: The 10-year Treasury yield touched 5.15% on Thursday—its highest level since 2007—and settled around 5.1% by Friday. The 30-year yield climbed above 5.44%, levels not seen since the mid-2000s. Those rising yields create competition for equities and raise borrowing costs for businesses.
Index ended the week near 14.87, effectively unchanged, indicating limited conviction among investors about the next market direction.
# What drove gains: tech and AI Semiconductor stocks extended a recent rebound. The iShares Semiconductor ETF (SOXX) rose 7.43% for the week. AMD had a notable single-session advance of nearly 10%, surpassing a $1 trillion market cap milestone during the week. Intel jumped 13.26% for the week. Renewed optimism in chip demand and positioning ahead of high-level U.S.–China discussions supported the group.
AI-linked names also outperformed. Meta's stock jumped on expectations that its new AI agent can be monetized, lifting both the Nasdaq and S&P 500. Microsoft and other large-cap techs contributed to the broader market's gains.
# Drag factors: yields, oil, and financials Rising bond yields and oil price volatility limited the rally. Oil swung widely: Brent fell to around $101.20 a barrel early in the week, dropped below $90 midweek on hopes for diplomatic progress in the U.S.–Iran situation, then rose above $103 and briefly touched $108 after diplomatic hopes dimmed following statements at the U.N. Oil settled near $104 at week's end.
# Economic backdrop
# What strategists say Portfolio managers and strategists warned that the market's ability to rise while yields climb is notable but may not persist if rates continue rising. Some managers trimmed S&P 500 targets because higher Treasury yields compete with equities by increasing the discount rate on future earnings and raising the cost of capital.
# Bottom line The week illustrated a market split: tech and AI optimism powered gains and record highs for some indexes, while rising Treasury yields and oil-market uncertainty capped upside and pressured financials and small caps. Continued strong economic readings keep the path for rates tilted higher, leaving the sustainability of the rally conditional on how far yields move and how earnings growth evolves.
U.S. stocks snapped a three-day losing streak Wednesday as gains by big technology companies and relatively steady oil prices and bond yields helped lift the market after a downbeat start to the week.
Investors are focused on strong corporate earnings and A.I., while looking past the war in Iran. But rising interest rates are an increasing risk to the rally.
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By Panos Mourdoukoutas Wall Street closed a volatile, mixed week, as investors weighed the Federal Reserve’s first interest-rate increase in three years against a supply-driven spike in oil prices, a bond-market selloff, and a fresh debate over the risks of artificial intelligence. The Dow Jones Industrial Average fell
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