Tech Stocks Drive Market Higher: Key After-Market Movers Steal the Show

Friday’s trading session painted a bullish picture for equities, with technology leading the charge. The S&P 500 climbed +0.88%, the Nasdaq 100 surged +1.31%, and the Dow Jones gained +0.38%. Futures followed suit—March E-mini S&P contracts rose +0.87% while March E-mini Nasdaq futures jumped +1.28%. But the real story wasn’t just broad market strength; specific sectors delivered eye-catching moves that deserve closer attention.

Cloud Infrastructure Stocks Bounce Back Sharply

After recent selling pressure tied to AI supply chain financing concerns, cloud infrastructure players staged a powerful comeback on Friday. CoreWeave (CRWV) shot up +23%, Applied Digital (APLD) gained +16%, and Nebius Group (NBIS) climbed over +15%. The reversal signals renewed investor confidence in the sector, suggesting dip-buying opportunities weren’t missed by major players.

Semiconductor Strength Lifts Entire Market

Chip stocks became the main engine driving the broader rally. Micron Technology (MU) led Nasdaq 100 gainers with a +7% pop. Advanced Micro Devices (AMD) followed with a +6% advance, while Nvidia (NVDA) contributed +3% to the Dow’s gains. Other semiconductor names including Broadcom (AVGO), KLA Corp (KLAC), NXP Semiconductors (NXPI), and Intel (INTC) all posted gains exceeding +1%. Applied Materials (AMAT), ASML Holding (ASML), and GlobalFoundries (GFS) similarly moved higher. The collective strength across the chip sector provided the foundation for Friday’s broader market advance.

Oracle’s Massive Surge Reflects TikTok Deal Momentum

Oracle (ORCL) surged more than +7% after TikTok CEO Chew announced binding agreements to establish a US-based joint venture with American investors—including Oracle. This development removed a key overhang from the market and reinforced confidence in cloud infrastructure plays.

Crypto-Exposed Equities Rally with Bitcoin Gains

Bitcoin climbed more than +2%, triggering gains across crypto-linked stocks. Riot Platforms (RIOT) ended up +8%, Galaxy Digital Holdings (GLXY) gained +6%, Mara Holdings (MARA) advanced +4%, MicroStrategy (MSTR) rose +3%, and Coinbase Global (COIN) added +2%. The synchronized move underscores the tight correlation between crypto asset prices and equity valuations in this sector.

Notable Winners Beyond Tech

Carnival (CCL) dominated the cruise sector, surging +9% after reporting Q2 adjusted EPS of 34 cents, beating consensus expectations of 24 cents. Norwegian Cruise Line (NCLH) and Royal Caribbean (RCL) followed with gains exceeding +6% and +2% respectively. Whitefiber (WYFI) jumped over +18% on news of a 10-year, 40 megawatt co-location agreement worth approximately $865 million. FactSet Research (FDS) rallied +5% following a double upgrade to overweight. Amphenol (APH) gained +4% on a raised price target, while upgrades also lifted Cummins (CMI), Generac Holdings (GNRC), and other industrials by at least +1%.

Significant Losers Dominated Consumer-Facing Sectors

Not all names shared in Friday’s strength. Nike (NKE) plummeted -10% following guidance for Q3 revenue declines in the low single digits and gross margin pressure of 175-225 basis points amid persistent China weakness. Lamb Weston (LW) crashed -25%, forecasting full-year net sales below consensus expectations. KB Home (KBH) dropped -8% after Q4 EPS disappointed and 2026 revenue guidance underwhelmed. KBR Inc (KBR) fell -5% on a price target cut, Conagra Brands (CAG) slipped -2% with organic sales declining faster than expected, and Lyft (LYFT) fell -2% following a downgrade to underperform.

Economic Data Mixed, Bond Yields Rise on Hawkish Fed Commentary

Friday’s economic calendar delivered contradictory signals. November existing home sales rose +0.5% month-over-month to a 9-month high of 4.13 million units, though slightly below expectations of 4.15 million. However, the University of Michigan’s December consumer sentiment index was unexpectedly revised lower by -0.4 points to 52.9, missing estimates for an upward revision to 53.5.

The 10-year Treasury note yield climbed +2.7 basis points to 4.149%, pressured by hawkish commentary from New York Fed President John Williams. He characterized recent economic data as “pretty encouraging” and noted no signs of sharp deterioration in labor market conditions. Williams also projected US GDP growth of 1.5% to 1.75% this year, with acceleration expected in 2026, and stated there’s “no urgency to need to act further on monetary policy right now.”

Global Markets Extend Gains; Bond Yields Reach Multi-Year Highs

Overseas exchanges painted a predominantly green picture. Japan’s Nikkei Stock 225 climbed +1.03%, while China’s Shanghai Composite rose +0.36% to 1-week highs. The Euro Stoxx 50 gained +0.32%. However, European government bonds came under pressure, with Germany’s 10-year bund yield reaching a 9-month high of 2.899% before finishing +4.6 basis points higher at 2.895%. The UK’s 10-year gilt yield rose +4.3 basis points to 4.524%.

Japan’s 10-year government bond yield surged to a 26-year high of 2.025% following the Bank of Japan’s rate increase announcement and guidance that further hikes will follow if economic and price outlooks materialize. This global bond volatility rippled across markets and contributed to the steepening yield curve observed in US Treasuries.

Technical Factors: Triple Witching Amplified Volatility

Friday’s trading was more volatile than typical due to the quarterly triple witching event—the simultaneous expiration of options, futures, and derivatives. According to Citigroup, a record $7.1 trillion in notional open interest rolled off the US options market, potentially exaggerating price moves across multiple asset classes.

Fed Rate Cut Odds Remain Low

Markets are currently pricing in only a 22% probability of a 25 basis point rate cut at the January 27-28 FOMC meeting. The European Central Bank faces even lower rate cut expectations, with swaps pricing in 0% odds for a -25 basis point cut at the February 5 policy meeting.

Summary

Friday’s rally showcased the persistent power of technology and semiconductor strength to drive broader market performance. After-market movers in cloud infrastructure, chip stocks, and crypto-linked equities demonstrated that sector rotation remains a dominant theme. While economic data remained mixed and bond yields pressed higher on hawkish Fed rhetoric, equity investors appeared willing to look through near-term headwinds. The contrast between Friday’s winners and losers suggests a market increasingly differentiated by earnings quality and guidance credibility, rewarding those who beat expectations while punishing those who disappointed.