Wall Street staged a powerful comeback on Friday as battered technology stocks and cryptocurrencies rebounded sharply, driving a broad-based rally that lifted the Dow Jones Industrial Average above the 50,000 mark for the first time. The surge marked a decisive reversal from earlier weakness driven by tech-sector selling and bitcoin’s steep losses, with investors rotating back into risk assets and cyclical names amid signs of stabilising sentiment.

Key Takeaways:

  1. Dow Reaches Historic Milestone: The Dow Jones Industrial Average surged 1,206.95 points, or 2.47%, to close at 50,115.67, marking its first-ever finish above the 50,000 level. For the week, the Dow gained 2.5%, benefiting from rotation away from high-growth technology shares.
  2. S&P 500 Reclaims Positive Ground: The S&P 500 jumped 1.97% to 6,932.30, climbing back into positive territory for 2026 after recent losses. Despite Friday’s rebound, the index still posted a modest 0.1% decline for the week, reflecting lingering volatility. 
  3. Nasdaq Leads Tech Recovery: The Nasdaq Composite advanced 2.18% to 23,031.21, snapping a multi-day slide as major technology and semiconductor stocks rebounded. The Nasdaq still fell 1.8% for the week.
  4. European Markets End Earnings Week Higher: European equities finished Friday on a firmer footing as a bumper earnings week drew to a close and early weakness reversed into the afternoon. The pan-European Stoxx 600 rose 0.9%, while the FTSE 100 ended the week 1.43% higher. France’s CAC 40 added 0.52%, Italy’s FTSE MIB edged up 0.07% to 45,853, and Germany’s DAX advanced about 0.9%, snapping a three-day losing streak and outperforming regional peers. Switzerland’s SMI gained 0.27% to 13,503.06. Macro data also supported the tone, with German exports rising 4% month-on-month in December to a 20-month high, beating a 1% forecast, while UK house prices rose 0.7% in January and were 1.0% higher year-on-year. 
  5. Asia Markets Mixed Amid Tech Weakness: Asian equities mostly declined, tracking earlier Wall Street losses in technology stocks. South Korea’s Kospi closed down 1.44% at 5,089.14, while the Kosdaq fell 2.49%. Australia’s ASX 200 dropped 2.03% to 8,708.8, its lowest level in nearly a month, posting its largest weekly fall since November 2025. Hong Kong’s Hang Seng slid 1.1%, and China’s CSI 300 eased 0.57%. In contrast, Japan’s Nikkei rose 0.81% to 54,253.68, while the Topix gained 1.28% to a record 3,699, supported by strength in automotive shares.
  6. Oil Prices Hold Steady: Crude prices were little changed following talks between the United States and Iran. Brent crude rose 0.74% to $68.05 a barrel, while WTI gained 0.41% to $63.55. Despite Friday’s stability, prices remained under pressure for the week due to oversupply concerns and Saudi Arabia’s fourth consecutive monthly price cut to Asian buyers. 
  7. Treasury Yields Remain Stable Amid Economic Assessment: US Treasury yields were relatively unchanged as investors assessed economic conditions and incoming data. The 10-year yield edged down to 4.206%, while the 30-year yield slipped to 4.853%. The 2-year yield rose to 3.495%. Markets continued to weigh mixed labour data and improving consumer sentiment, with attention turning to the delayed January CPI release scheduled for 13 February.
  8. Consumer Sentiment Improves: The University of Michigan’s consumer sentiment index rose to 57.3 in February, up 1.6% from January and above expectations. The current conditions gauge climbed to 58.3. One-year inflation expectations fell to 3.5%, the lowest since January 2025, while five-year expectations edged up to 3.4%. The data suggested easing inflation concerns, particularly among households with significant equity exposure.
  9. Cryptocurrency Rebound Eases Risk-Off Mood: Bitcoin rebounded sharply, rising 10.08% to $70,008.21 after falling below $61,000. The move marked its largest daily percentage gain since March 2025 and helped stabilise broader risk sentiment. Despite Friday’s surge, bitcoin remained down 16% for the week and more than 50% below its October peak near $126,000.

FX Today:

  1. EUR/USD Pushes Higher as Buyers Defend Breakout Zone: EUR/USD closed at 1.1822, up 0.38%, after trading between 1.1826 and 1.1766, finishing close to the session peak as buying interest remained firm. The pair continues to trade comfortably above its 50-day SMA at 1.1730, the 100-day at 1.1679, and the 200-day at 1.1618, underlining the strength of the medium-term uptrend. Recent price action reflects a sustained sequence of higher highs and higher lows, keeping the broader structure constructive. The clearance of earlier resistance has encouraged fresh momentum-driven positioning. Immediate resistance is located at 1.1826, with scope for a move towards 1.1850 and potentially 1.1900 if follow-through develops. On the downside, initial support rests at the 50-day average, followed by the 100-day line. 
  2. GBP/USD Rebuilds Uptrend After Reclaiming Major Averages: GBP/USD settled at 1.3618, rising 0.64% after moving between 1.3624 and 1.3509, posting its strongest close in several sessions. The pair has decisively regained its 50-day SMA at 1.3468, the 100-day at 1.3381, and the 200-day at 1.3428, restoring technical support beneath price. The latest advance suggests that buyers have regained control following the early-month pullback. Momentum indicators have turned more favourable as selling pressure continues to fade. Resistance is now centred near 1.3624, with the 1.3800–1.3850 zone emerging as the next upside objective. Support is clustered around 1.3509 and the 200-day average. Sustained trade above 1.3600 would reinforce the recovery narrative.
  3. USD/CAD Finds Temporary Support After Heavy Selling: USD/CAD ended at 1.3655, down 0.40%, after trading between 1.3725 and 1.3624, recovering modestly from early-session weakness. The long lower shadow highlights renewed buying interest near recent lows following the sharp decline. Despite the intraday rebound, the pair remains below its 50-day SMA at 1.3782, the 100-day at 1.3888, and the 200-day at 1.3824, keeping the broader bias tilted lower. The sequence of lower highs since December remains intact, limiting upside potential for now. Resistance is concentrated near 1.3725 and the 50-day average. Support is located at 1.3624 and then at the psychological 1.3500 level. Failure to hold current levels would reopen downside risks.
  4. AUD/USD Extends Rally Toward Multi-Month Highs: AUD/USD finished at 0.7020, up 1.36%, after fluctuating between 0.6897 and 0.7025, delivering one of its strongest daily performances this quarter. The pair remains firmly positioned above its 50-day SMA at 0.6735, the 100-day at 0.6634, and the 200-day at 0.6569, confirming a well-established bullish trend. The broader structure continues to favour buyers, with successive higher highs supporting upside momentum. Friday’s close near the session top reflects strong demand into the weekend. Immediate resistance stands at 0.7025, marking a key breakout threshold. 
  5. Gold Resumes Uptrend as Buying Pressure Accelerates: Gold closed at $4,951, up 3.65%, after trading between $4,971 and $4,655, ending firmly near session highs. The metal continues to trade well above its 50-day SMA at $4,535, the 100-day at $4,262, and the 200-day at $3,813, reinforcing the strength of the longer-term trend. The latest advance marks a decisive break from recent consolidation, with momentum clearly re-engaging to the upside. Price action continues to reflect strong institutional and speculative demand. Immediate resistance is located at $4,971, aligning with recent peaks. A clear break would bring the $5,000 level into focus. Support is anchored at $4,655 and then near the 50-day average.
  6. Silver Extends Breakout as Volatility Remains Elevated: Silver surged to $77.47, gaining 9.21% after swinging between $64.10 and $78.14 in an exceptionally volatile session. The metal finished near the top of its range, highlighting aggressive dip-buying activity following early weakness. Silver remains well supported above its 50-day SMA at $76.61, the 100-day at $62.53, and the 200-day at $49.52, confirming the strength of the broader uptrend. The underlying structure continues to favour further upside, supported by persistent higher highs. Resistance stands at $78.14, representing a key multi-year barrier. A sustained break would open fresh upside territory. Initial support is centred around the 50-day average and the $64.10 low.

Market Movers:

  1. Chipmakers and AI Stocks Rally: ARM Holdings and Super Micro Computer surged over 11%, Nvidia rose more than 8%, while AMD, KLA, Lam Research, and Marvell Technology gained over 8% as investors rotated back into semiconductors.
  2. Bill Holdings Soars on Earnings: Bill Holdings jumped more than 36% after beating earnings expectations and raising full-year guidance.
  3. Molina Healthcare Slumps: Molina fell over 25% after reporting an unexpected quarterly loss and issuing weak full-year guidance.
  4. Doximity Slides on Outlook: Doximity dropped more than 16% after forecasting revenue below consensus estimates.
  5. Amazon Falls on Capex Concerns: Amazon sank over 5% after warning of $200 billion in capital spending, raising worries over AI investment returns.

Friday’s powerful rebound marked a turning point after a turbulent week dominated by tech selling and cryptocurrency volatility. The Dow’s historic close above 50,000 underscored renewed confidence in cyclical and value-oriented stocks, while stabilisation in bitcoin and technology shares helped restore risk appetite. With investors now focused on inflation data, central bank signals, and upcoming earnings, markets appear poised for continued volatility, even as Friday’s rally offers hope that the recent correction may be finding firmer ground.