AI Optimism Boosts Wall Street Despite Elevated Oil Prices

Wall Street's main indexes inched higher on Friday as optimism around AI boosted sentiment despite elevated oil prices and rising Treasury yields.

The Dow Jones Industrial Average rose 226.73 points, or 0.44%, to 51,576.71, the S&P 500 gained 22.49 points, or 0.29%, to 7,726.62 and the Nasdaq Composite gained 109.38 points, or 0.41%, to 27,048.75.

The technology sector was the week's best-performing sector, gaining 1% as AI-related optimism drove market sentiment. Microsoft shares rose 3% after unveiling new capabilities in its Copilot app, including a coding tool and an always-on AI agent.

However, inflation worries driven by prolonged Iran and Ukraine conflicts and soaring government debt capped optimism. Brent crude prices hovered over $100 a barrel and the yield on the 10-year Treasury note was at 5.1%.