The Dow Jones Industrial Average surged more than 1,200 points on Friday and crossed the 50,000 mark for the first time. The move capped a sharp rebound in U.S. stocks after a tech-driven selloff earlier in the week.
The Dow jumped 1,206 points, or about 2.5 percent, to close at 50,115.67. The S&P 500 rose nearly 2 percent, while the Nasdaq Composite climbed more than 2 percent. This marked the strongest session for U.S. stocks since May 2025.
The rally was fueled largely by a rebound in technology shares. Chipmakers led the advance. Nvidia surged nearly 8 percent. Broadcom rose more than 7 percent. Shares of Advanced Micro Devices also posted gains above 7 percent.
Investors rotated back into tech after three consecutive days of losses, according to Fox Business. Those declines were driven by concerns over artificial intelligence spending, competition, and stretched valuations. Nine of the 11 S&P 500 sectors finished higher on the day. Information technology and industrials led the gains.
The milestone drew a public response from Donald Trump, who celebrated the record in a Truth Social post.
“The Dow Jones Industrial Average just hit 50,000 for the first time in History. CONGRATULATIONS AMERICA!” Trump wrote.
In a separate post, Trump said analysts had once claimed hitting 50,000 by the end of his term would signal success. He said the index reached that level years ahead of schedule. Trump warned voters to “Remember that for the Midterms, because the Democrats will CRASH the Economy!”
CBS News reported optimism around continued investment in artificial intelligence helped drive buying interest. Amazon CEO Andy Jassy said the company expects to spend roughly $200 billion this year. The investment targets areas including AI, chips, robotics, and satellites. Alphabet announced similar spending plans earlier in the week.
Heavy investment commitments have also raised questions. Some investors are unsure whether AI spending will generate returns quickly enough. Amazon shares fell more than 5 percent on Friday.
Improving consumer sentiment also supported the rally. A preliminary University of Michigan survey showed inflation expectations for the next year fell to their lowest level since January 2025. The data surprised economists. It lifted stocks tied to household spending.
“Market sentiment improved after today’s positive report out of the University of Michigan,” LPL Financial chief economist Jeffrey Roach said. He noted easing inflation expectations provided reassurance for investors. The quote was reported by both CBS News and Fox Business.
Airline stocks advanced on hopes that stronger confidence among consumers would translate into more travel spending. United Airlines climbed more than 9 percent. Delta Air Lines and American Airlines each gained around 8 percent, CBS reported.
Despite Friday’s surge, CBS News noted the S&P 500 still logged its third losing week in the past four. Markets remain volatile. Investors are weighing the long-term impact of artificial intelligence. They are also watching inflation data and expectations for interest-rate cuts later this year.