US Stocks Climb as Wall Street Rethinks AI Risks and Tech Spending

Feb 7, 2026, 2:23 AM

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US stocks experienced a significant rebound on Friday, recovering from a weeklong decline attributed to concerns over the impact of artificial intelligence (AI) and the financial burdens of major tech companies. The Dow Jones Industrial Average (^DJI) surged by approximately 2.5%, translating to more than 1,200 points, marking its ascent above the 50,000 level for the first time.

The S&P 500 (^GSPC) enjoyed a robust increase of 2%, registering its best performance since May of the previous year. Meanwhile, the Nasdaq Composite (^IXIC) rose about 2.1%, as the major indexes bounced back from sharp losses witnessed on Thursday and a persistent week of selling pressure.

This positive shift in sentiment came as executives from Big Tech and market analysts began to reassess the fears surrounding AI's effects on established technology firms. Despite the week's earlier turmoil, the Dow concluded with a net gain of 2.5%, although the S&P 500 and the Nasdaq ended the week in the red.

Several key technology stocks played a pivotal role in this recovery. Nvidia (NVDA) saw its stock soar over 8%, while Broadcom (AVGO) and Tesla (TSLA) also posted notable gains. However, not all tech companies shared in the rally; Amazon's (AMZN) shares decreased by 7% after the company revealed plans for a significant increase in spending, projecting at least $200 billion in expenditures by 2026, despite falling short of its operating income forecast.

The broader market sentiment also extended to cryptocurrency, with Bitcoin (BTC-USD) climbing back above $70,000 after briefly hitting a 16-month low. Despite this recovery, Bitcoin remains down nearly 20% year-to-date, having erased all its gains from the post-Trump election period earlier in the week.

Additionally, the firm Strategy (MSTR), heavily affected by the cryptocurrency downturn, reported a quarterly loss. Initially, this news weighed on its stock; however, shares surged over 13% on Friday as Bitcoin's recovery boosted investor confidence and the CEO alleviated concerns regarding debt-servicing risks.

In a contrasting development, automaker Stellantis (STLA) announced it would incur a charge exceeding 22 billion euros (approximately $26 billion) as part of its strategy to scale back its electric vehicle (EV) initiatives. This announcement led to a substantial drop in shares, which plummeted more than 20% both in the US and Milan.

Looking forward, investors are anticipating the release of the January jobs report, which has been rescheduled for Wednesday next week. Recent data has shown troubling signs in the labor market, with job openings falling to their lowest levels since 2020 and a surge in layoff announcements occurring in recent weeks.

As the stock market adjusts to these developments, analysts will be closely monitoring the interplay between AI advancements, Big Tech spending, and overall economic indicators to gauge future market directions.

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