Market Hits All-Time Highs as Major Tech Stocks Surge

Several of the world’s largest stocks reached unprecedented highs on Friday, as major stock indexes climbed to all-time records, underscoring the market’s resilience in the face of uneven economic conditions. The benchmark S&P 500 and tech-heavy Nasdaq Composite closed at record levels, gaining 0.5% and 0.9% respectively. This performance followed a morning jobs report revealing higher-than-expected unemployment, which paradoxically had a positive effect on the market. The slight rise in unemployment is anticipated to support future interest rate cuts, which typically enhance public companies’ valuations by reducing borrowing costs and making bond returns less attractive.

Leading the charge in Friday’s rally were major technology stocks, which are particularly sensitive to interest rate changes due to their reliance on debt financing and consumer discretionary spending. Microsoft, Apple, Alphabet, Amazon, and Meta—five of the six American companies with valuations exceeding $1 trillion—each saw their shares rise by at least 1.2%, setting new record highs. Other significant tech firms, such as cloud computing giant Oracle and AI chip designer Arm Holdings, also reached all-time highs. Meanwhile, electric vehicle manufacturer Tesla and streaming leader Netflix saw their share prices soar to their highest levels this year.

Physical retailers Costco and Walmart joined the tech surge, setting new record stock prices on Friday. Shares of each company rose by approximately 2%, reflecting strong investor confidence in their continued performance despite broader economic uncertainties.

The “magnificent seven” group of the U.S.’ largest tech companies—comprising Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—collectively added a staggering $224 billion to their market value on Friday. Notably, Nvidia, which has been a standout performer due to its advancements in AI technology, saw a 1.9% drop, equating to a $60 billion decrease in its market value. This decline was an outlier in an otherwise bullish day for tech stocks.

Friday also marked the second-lowest trading volume day for the S&P 500 over the past twelve months, according to data from Yahoo Finance, with only Wednesday having lower volume. Such reduced trading activity can amplify price movements, leading to more pronounced gains or losses.

The S&P 500 has delivered a 17% return year-to-date and a remarkable 49% return over the past two years. This impressive performance has been fueled largely by investor optimism about the potential of generative AI. The rally has been concentrated in big tech names that are well-positioned to capitalize on this burgeoning technology, driving substantial gains in their stock prices.

The surge in big tech stocks has significantly boosted the net worth of the billionaires associated with these companies. Meta CEO Mark Zuckerberg’s fortune increased by $10 billion on Friday alone, according to our latest estimates. Google cofounders Sergey Brin and Larry Page each saw their wealth grow by approximately $3.5 billion. Additionally, Tesla CEO Elon Musk and Amazon founder Jeff Bezos, the world’s first- and second-richest individuals, respectively, each became about $2 billion wealthier. This remarkable increase in wealth highlights the significant impact of stock market movements on the fortunes of the tech elite.