US stocks rose on Friday as Wall Street attempted to close out a turbulent week on a positive note, with gains in technology and industrial shares helping lift the major averages despite lingering geopolitical and policy-related concerns.

The S&P 500 climbed 0.3%, while the Dow Jones Industrial Average added about 100 points, or 0.2%.

The Nasdaq Composite outperformed, gaining 0.5%, supported by renewed strength in large-cap technology stocks.

Tech and industrials lift markets

Technology names were among the session’s leaders.

Shares of Nvidia rose more than 1%, extending a rebound that began earlier in the week following strong earnings from Taiwan Semiconductor Manufacturing.

Tesla also traded more than 1% higher, contributing to the Nasdaq’s advance.

On the Dow, industrial heavyweights IBM and Honeywell led gains, rising 1.9% and 1.6%, respectively.

Their advance reflected continued investor interest in companies viewed as beneficiaries of longer-term trends in automation, digital infrastructure, and industrial modernisation.

Despite Friday’s gains, weekly performance across the major benchmarks was mixed.

The S&P 500 hovered just below breakeven for the week, while the Nasdaq Composite was on track for a modest 0.2% decline.

The Dow outperformed its peers, heading for a weekly gain of about 0.1%.

Chip rally follows TSMC results and trade deal

The major averages were coming off a winning session on Thursday, when semiconductor stocks surged.

Taiwan Semiconductor Manufacturing led the advance after delivering a strong fourth-quarter earnings report that reinforced confidence in sustained demand for advanced chips tied to artificial intelligence.

That optimism was further bolstered by news of a trade agreement between the United States and Taiwan, under which Taiwanese chip and technology companies committed to invest at least $250 billion in production capacity in the US.

The agreement was viewed as a positive step toward strengthening domestic supply chains and supporting long-term growth in the semiconductor sector.

The combination of robust earnings and supportive policy developments helped offset broader market anxiety that has dominated trading in recent sessions.

A week shaped by Washington headlines

Investors spent much of the week grappling with a steady stream of headlines from Washington.

Those ranged from heightened geopolitical tensions involving Iran and Greenland to renewed concerns over threats to the Federal Reserve’s independence.

The uncertainty weighed on sentiment earlier in the week, contributing to bouts of volatility as traders attempted to assess how political developments could affect monetary policy, trade relations, and global risk appetite.

Despite those headwinds, markets have remained resilient, supported by solid corporate earnings and continued enthusiasm around artificial intelligence and technology investment.

Morgan Stanley sees earnings-driven upside

Looking ahead, analysts at Morgan Stanley Wealth Management said corporate earnings strength could help propel further gains in equities.

In a note, the firm’s strategists, including Lisa Shalett, said expectations for corporate results are “already robust” and reflect assumptions of significant productivity gains, operating margin expansion, and record-high operating leverage.

The analysts cautioned, however, that the impact of stimulus measures in President Donald Trump’s signature budget bill on US consumers may be “overestimated versus overall sentiment.”

They also pointed to headwinds from elevated credit levels and affordability pressures that could temper consumer spending.

At the same time, Morgan Stanley said the widespread adoption of artificial intelligence, which helped power strong equity gains in 2025, is likely to proceed more slowly than many investors currently expect.

The firm argued that the Federal Reserve’s focus may shift away from cutting interest rates and toward “accommodating balance sheet growth” this year. That shift, they said, will shape the broader market backdrop.

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