U.S. stocks ended higher and the Nasdaq notched a record closing high for the second straight day on Friday as technology-related shares, including Apple, gained and as investors were optimistic about potential interest rate cuts.
Market Snapshot
The Dow Jones Industrial Average rose 206.97 points, or 0.47%, to 44,175.61, the S&P 500 rose 49.45 points, or 0.78%, to 6,389.45 and the Nasdaq Composite rose 207.32 points, or 0.98%, to 21,450.02.
Market Movers
Apple shares climbed 4.2% on Friday and were up 13.3% for the week in their biggest weekly percentage gain since 2020. U.S. President Donald Trump on Wednesday said Apple would invest an additional $100 billion in the U.S., bringing its total commitment to $600 billion over the next four years.
Tesla shares were up 2.3% on Friday. Tesla Inc. has been granted a rideshare license in Texas, paving the way for the electric-vehicle maker to operate its robotaxi service under new regulations governing autonomous vehicles in the state.
Netflix stock traded 2.65% higher on Friday, backed by investor optimism over its U.K. financial arm’s results and FIFA Women’s World Cup deal win.
Shares of SoundHound AI were up 26% after the voice-based AI company beat expectations by a wide margin. The company posted an adjusted loss of 3 cents a share, narrower than the expected loss of 5 cents. Revenue rose 217% year over year to $43 million. CEO Keyvan Mohajer called it the company's "strongest ever quarter."
Trade Desk plummeted 39% despite solid second-quarter earnings. Revenue came in at $694 million, up 19% from last year and ahead of expectations. However, the ad-tech company cautioned revenue growth was expected to slow in the third quarter and announced Chief Financial Officer Laura Schenkein will be replaced by Alex Kayyal -- a board member who spent nearly a decade at Salesforce in executive roles -- on Aug. 21.
Expedia Group rose 4.1% after the online travel agency raised its full-year outlook on the back of second-quarter earnings that beat expectations. Expedia now expects revenue and gross booking growth of between 3% and 5% each, up from a previous range of 2% to 4%. Analysts at J.P. Morgan, Melius Research, and Evercore ISI all hiked their price targets Friday.
Shares of Peloton Interactive gained 11%. The maker of fitness equipment swung to a surprise profit in its fiscal fourth quarter and announced that it would be undertaking a cost restructuring plan on Thursday. Goldman Sachs analyst Eric Sheridan upgraded the stock to Buy from Neutral with a $11.50 target price, up from $7, on Friday, giving shares a boost.
Pinterest tumbled 10% after the photo-sharing website disappointed Wall Street with its latest earnings report. Second-quarter earnings were 33 cents a share on revenue of $998 million, below the 35 cents a share on revenue of $975 million expected by analysts, according to FactSet.
Twilio sank 19%, even after the cloud communications company posted earnings that beat expectations. Adjusted earnings of $1.19 a share and revenue of $1.2 billion both topped estimates. However, analysts at Oppenheimer & Co. noted persistent gross-margin pressure was "likely to drive negative gross-margin revisions near term."
Gilead Sciences climbed 8.3% after the biopharmaceutical giant raised guidance on the back of strong demand for its HIV medicine and solid quarterly earnings late Thursday. CEO Daniel O'Day told Barron's the recent launch of Gilead's HIV prevention shot, Yeztugo, had started off well.
Microchip Technology declined 6.6% after it reported quarterly earnings and issued guidance that left investors wanting more. Adjusted earnings came in ahead of expectations at 27 cents a share. Sales were largely in line with analysts' call of $1.1 billion, but down 13% from last year. The company forecast sales for the current quarter between $1.11 billion and $1.15 billion.
Take-Two Interactive Software fell 4%, even after the game developer reported better-than-expected results for its fiscal first quarter. Take-Two posted a loss of 7 cents a share, narrower than the loss of 69 cents analysts had anticipated. Management guided for fiscal 2026 bookings between $6.05 billion and $6.15 billion, up from a prior range of $5.9 billion to $6 billion.
Shares of Block, the company behind Cash App and Square, fell 4.5%. While the fintech raised its full-year outlook, second-quarter adjusted earnings and revenue missed Wall Street forecasts. Block now sees 2025 gross profit of $10.17 billion and adjusted operating income of $2.03 billion, up from previous guidance of $9.96 billion and $1.9 billion, respectively.
Firefly Aerospace dropped 17% on its second day of trading on the Nasdaq. It closed 34% above the initial public offering price Thursday and gave back some of those gains Friday.
Under Armour plummeted 18%. The sportswear retailer said it expects sales to decline by between 6% and 7% in the current quarter, and noted that its outlook takes into account uncertainty around trade policies and the broader macroeconomic environment, including tariffs.
Market News
Trump Administration Eyeing IPOs for Fannie Mae and Freddie Mac This Year
U.S. President Donald Trump's administration could kick off initial public offerings of Fannie Mae and Freddie Mac later this year, according to a senior administration official, marking a key milestone for the mortgage finance giants that have been under government control for years.
The share sales could value Fannie and Freddie at nearly $500 billion combined, the official said, speaking on the condition of anonymity.
Trump Fires IRS Commissioner, Bessent Named Acting Head
U.S. President Donald Trump is removing Billy Long as the commissioner of the Internal Revenue Service and Treasury Secretary Scott Bessent will temporarily serve as acting commissioner, a White House official and a source familiar with the matter said on Friday.
The New York Times, which first reported the news, said Long, a former congressman from Missouri, was expected to be nominated for an ambassador post, but did not name the country.
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