Wall Street opened higher on Friday, after US producer price inflation came in below expectations, although early gains faded among technology stocks as Microsoft and Nvidia remained under pressure.
The Dow Jones Industrial Average gained 193.6 points, or 0.37%, to 52,490.68 at the opening bell, while the S&P 500 advanced 24.5 points, or 0.32%, to 7,616.85.
The technology-heavy Nasdaq Composite initially rose 41.9 points, or 0.17%, to 25,408.00, before reversing direction as selling pressure returned to parts of the sector.
By 9.43am Eastern Time, the Nasdaq had fallen 74.64 points, or 0.29%, to 25,291.46. The Nasdaq 100 performed worse, declining 0.79% to 28,066.13.
US producer prices increased 0.3% in October, according to figures from the Bureau of Labor Statistics, below economists’ expectations of 0.4%.
The softer-than-anticipated reading offered some reassurance after recent consumer inflation figures raised concerns about persistent price pressures and the possibility of further Federal Reserve interest rate increases.
However, the improvement in wholesale inflation was insufficient to sustain the initial technology rally, with investors continuing to assess company-specific developments and the outlook for artificial intelligence infrastructure spending.
Microsoft shares declined approximately 1% in early trading, as the technology group continued efforts to restore services following a major global outage affecting Outlook and other Microsoft 365 applications.
The shares were quoted around $516.86, before recovering to approximately $519.29, representing a decline of 0.71% at the later observation.
The outage disrupted email access and cloud-based applications for businesses and individuals worldwide, raising questions about service reliability and the operational impact on Microsoft’s customers.
Microsoft has attributed the disruption to infrastructure problems and reported progress in restoring services, although investors continue to monitor the recovery.
Nvidia fell 1.9% to $163.03, extending recent volatility following the resignation of co-founder and Chief Executive Jensen Huang.
The company has appointed Chief Financial Officer Colette Kress as interim CEO while searching for a permanent successor, leaving investors focused on leadership continuity and the future direction of the AI chipmaker.
CoreWeave also remained sensitive to developments across the artificial intelligence sector, although other specialist computing companies continued attracting investor interest.
Cerebras Systems surged more than 12% to $109.79, extending gains following stronger third-quarter results and an upgraded revenue outlook.
The advance highlighted continued demand for selected AI-related businesses despite broader uncertainty surrounding technology valuations and financing costs.
Meanwhile, Paysafe’s recent earnings disappointment continued to weigh on sentiment towards digital payments companies, following the group’s sharp share-price decline in the previous session.
Looking further ahead, Goldman Sachs has forecast that the S&P 500 could reach 8,700 points over the next 12 months, arguing that more attractive valuations following the recent sell-off could support equity gains.
The investment bank expects the market to benefit from improving valuations despite slower earnings growth, although its target remains a forecast rather than a guaranteed outcome.
