U.S. stocks finish higher at week's end with AI shares surging

NEW YORK, New York - A surge in buying of AI stocks propelled U.S. markets higher Friday, and pushed the Nasdaq Composite up more than one percent.

"The kind of onslaught of issuance from some of the hyperscalers, some of the AI trades, could weigh on markets into 2026," Tom Garretson, senior portfolio strategist at RBC Wealth Management, said to CNBC Friday. "But again, these are kind of some of the best-rated companies in terms of credit qualities. They obviously have the capacity to ramp up debt to finance some of this stuff."

"We're still counting on some of the capex spend kind of supporting a broader or probably better growth backdrop," Garretson added.

The Standard and Poor's 500 rose 0.88 percent to close at 6,834.50, after trading between an intraday low of 6,792.62 and a session high of 6,840.02. The benchmark index remained within reach of its recent record highs as buying interest broadened across sectors.

The Dow Jones Industrial Average added 183.04 points, or 0.38 percent, to finish the session at 48,134.89. The blue-chip index touched a high of 48,289.63 during the day, reflecting gains among industrial and financial stocks.

Technology shares led the advance, with the NASDAQ Composite climbing 1.31 percent to close at 23,307.62. The index benefited from strong performances across large-cap technology and growth-oriented names, driving trading volumes higher.

Japanese yen tumbles after Bank of Japan hikes interest rates, broader FM market ends week mixed

Major currencies were mixed in Friday's foreign exchange trading, with the U.S. dollar strengthening against several peers while easing slightly against the euro and New Zealand dollar. The biggest mover was the Japanese yen which dived more than two yen after the Bank of Japan raised official interest rates to a three-decade high., from 0.50 to 0.75 percent.

The euro edged lower against the greenback, with the EUR/USD pair slipping 0.03 percent to trade at 1.1718. Meanwhile, the British pound was marginally firmer, as GBP/USD rose 0.04 percent to 1.3385.

The U.S. dollar surged against the Japanese yen, with USD/JPY climbing 1.38 percent to 157.59. The dollar also strengthened modestly versus the Swiss franc, with USD/CHF up 0.13 percent at 0.7949.

Against commodity-linked currencies, the U.S. dollar was mixed. USD/CAD advanced 0.16 percent to 1.3793, while the Australian dollar edged higher against the greenback, with AUD/USD rising 0.06 percent to 0.6615.

The New Zealand dollar underperformed, with NZD/USD falling 0.18 percent to 0.5761.

Overall, Friday's currency markets reflected a cautious trading environment, as investors weighed shifting interest rate expectations and broader global economic signals while positioning ahead of the new trading week.

Global share markets closed mostly higher on Friday, with gains across the UK Europe, Canada, and much of the Asia-Pacific region as investors wrapped up the week on a broadly positive note.

Canadian equities ended the week on a positive note. The S&P/TSX Composite Index rose 1.00 percent to finish at 31,755.82, supported by strength in energy and materials stocks

UK and European markets finished the session in positive territory. London's FTSE 100 rose 0.61 percent, ending the day at 9,897.42, supported by gains across industrial and financial stocks.

In Germany the DAX added 0.37 percent to close at 24,288.40, while France's CAC 40 edged higher by 0.01 percent to 8,151.38.

The broader regional picture on Friday was also upbeat. The EURO STOXX 50 advanced 0.32 percent to 5,760.35, while the Euronext 100 Index climbed 0.43 percent to finish at 1,713.91. European shares were buoyed by the EU's decision to provide Ukraine with a $105.5 billion aid package.

Belgium's BEL 20 gained 0.39 percent, closing at 5,074.52.

Positive tone on Asian markets

Asian markets were mixed but leaned positive overall. Hong Kong's Hang Seng Index rose 0.75 percent to 25,690.53, while in Japan the Nikkei 225 surged 1.03 percent to close at 49,507.21.

China's SSE Composite Index added 0.36 percent, finishing at 3,890.45.

South Korea's KOSPI Composite Index added 0.65 percent, ending the session at 4,020.55, and in Taiwan the TWSE Capitalization Weighted Stock Index jumped 0.83 percent to 27,696.35.

In Southeast Asia, Singapore's STI Index slipped slightly, down 0.02 percent to 4,569.78.

In Indonesia Friday the IDX Composite declined 0.10 percent to 8,609.55, while Malaysia's FTSE Bursa Malaysia KLCI stood out with a strong gain of 1.15 percent, closing at 1,665.90.

Australasian markets also finished higher. Australia's S&P/ASX 200 rose 0.39 percent to 8,621.40, while the broader All Ordinaries index advanced 0.48 percent to 8,918.30.

In New Zealand, the S&P/NZX 50 Gross Index gained 0.58 percent, ending the day at 13,333.40.

In Southeast Asia, India's S&P BSE Sensex climbed 0.53 percent to close at 84,929.36.

Middle East markets were closed on Friday and will reopen on Sunday.

In Africa - South Africa's Top 40 USD Net TRI Index edged up 0.17 percent to 6,875.95.

Overall, Friday's session reflected a cautiously optimistic tone across global equity markets, with most major indices posting modest gains to close out the trading week.

(This report incorporates quotes retrieved with the assistance of artificial intelligence).