Microsoft Surge Drives Dow Higher Amid AI Market Shifts

The Dow Jones Industrial Average led major indexes higher on Friday, driven by Microsoft's 4.1% surge after it repositioned its Copilot AI assistant as a pure enterprise product.

This decision contributed 120 points to the Dow, which rose 0.8%, while the Nasdaq Composite gained 0.5% and the S&P 500 added 0.4%. Nineteen of the Dow's 30 components traded higher.

The move is a significant shift for Microsoft, which had previously aimed to build a consumer AI assistant similar to those offered by OpenAI and Meta. By focusing on enterprise products, the company can tap into a more lucrative market.

In contrast, Meta dropped 3.6% after announcing plans to put its Muse agent into AI glasses and previewing a pocket-sized gadget called Charm. The market reacted poorly to this news, with investors unimpressed by Meta's ambitious plans.