NEW YORK, New York - U.S, stock markets bounced back with a solid trading day Friday, bringing to an end the wreckage of the previous three trading days. A strong performance by Nvidia and other AI stocks led the charge.

"We're in a gold rush right now with AI," Falcon Wealth Planning founder Gabriel Shahin told CNBC Friday.

"You have the investment that Google is making, Nvidia is making, that Meta is making, that Amazon is making. There is money that will be deployed," he said. "It's just the carousel [of money movement] sometimes scares people."

The Dow Jones Industrial Average led the charge with its historic performance, skyrocketing 1,206.95 points, or 2.47 percent, to close at a record 50,115.67. 

The technology-heavy NASDAQ Composite also posted a formidable gain, jumping 490.63 points, or 2.18 percent, to finish at 23,031.21.

The broad Standard and Poor's 500 index rose 133.87 points, a gain of 1.97 percent, closing at 6,932.27.

The synchronized upswing was fueled by renewed investor optimism, driven by corporate earnings results and economic data that alleviated recent concerns. The record-setting close for the Dow underscored a robust bullish momentum entering the weekend, marking one of the most positive trading sessions of the year for U.S. equities.

. U.S. Dollar Weakens Against Commodity Currencies as Risk Sentiment Improves

The U.S. dollar traded with a softer tone against major commodity-linked currencies on Friday, while the euro and British pound also posted gains, as a pickup in global risk appetite pressured the greenback.

The Australian dollar was the standout performer, with the AUD/USD pair surging 1.32 percent to 0.7017. The New Zealand dollar followed closely, as the NZD/USD pair advanced 1.15 percent to 0.6017. The GBP/USD pair also saw significant strength, rising 0.68 percent to 1.3616.

The euro extended its gains, with EUR/USD climbing 0.37 percent to 1.1820. In contrast, the U.S. dollar lost ground against the Swiss franc, with USD/CHF falling 0.30 percent to 0.7754, and against the Canadian dollar, as USD/CAD declined 0.36 percent to 1.3659.

The dollar's performance was mixed against the Japanese yen, with USD/JPY edging up a modest 0.07 percent to 157.13.

Analysts attributed the moves to a modest rebound in investor confidence, which diminished demand for the safe-haven U.S. dollar and bolstered currencies tied to global growth and commodity exports. The sharp rallies in the Antipodean currencies suggested a positive shift in market sentiment to end the trading week.

Global Stock Markets Display Mixed Performance to Close the Week; Canadian, UK, and European Indices Lead Gains

Global equity markets presented a fragmented picture at Friday's close, with European benchmarks solidifying weekly gains while several major Asian-Pacific indices faced significant pressure.

In Canada the benchmark S&P/TSX Composite index advanced 476.38 points, or 1.49 percent, to settle at 32,470.98.

The UK's FTSE 100 added 60.53 points, a gain of 0.59 percent, settling at 10,369.75.

In Europe, the rally was broad-based. Germany's DAX surged 230.40 points, or 0.94 percent, to close at 24,721.46. The pan-European EURO STOXX 50 performed even better, jumping 1.23 percent to finish at 5,998.40.

In France Friday, the CAC 40 rose 0.43 percent to 8,273.84, and the Euronext 100 climbed 0.93 percent to 1,787.84.  Belgium's BEL 20 was a rare decliner in the region, edging down 0.14 percent to 5,517.52.

Asian markets told a different story. Australia's S&P/ASX 200 was a notable laggard, tumbling 2.03 percent to 8,708.80, while the broader All Ordinaries index fell 2.19 percent.

Indonesia's IDX Composite dropped 2.08 percent, and South Korea's KOSPI declined 1.44 percent.

In Hong Kong Friday, the Hang Seng Index fell 1.21 percent to 26,559.95, and Singapore's STI Index retreated 0.83 percent.

Other Asian markets saw more modest moves or gains. India's S&P BSE Sensex bucked the regional trend, advancing 0.32 percent to a record closing high of 83,580.40.

In Japan the Nikkei 225 continued its strong run, rising 0.81 percent to 54,253.68.

Taiwan's TWSE index was nearly flat, dipping a marginal 0.06 percent.

Mainland China's SSE Composite Index slipped 0.25 percent.

In other regions, Malaysia's FTSE Bursa Malaysia KLCI inched up 0.10 percent, while New Zealand's S&P/NZX 50 dipped 0.17 percent.

The trading day underscored a divergence in regional sentiment, with Canadian, UK, and European investors buoyed by corporate and economic data, while several Asia-Pacific markets grappled with local economic concerns and broader risk-off sentiment. Middle East markets were closed and will reopen on Sunday.

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

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