Wall Street closed higher on Friday, propelled by gains in Microsoft and other artificial intelligence stocks, even as persistent high oil prices and climbing U.S. Treasury yields kept investors cautious throughout the volatile trading week.
Wall Street Closes Higher on September 25, 2026
Major U.S. stock indexes finished the week on an upward trajectory on September 25, 2026, supported by robust capital expenditures in AI infrastructure and significant corporate developments across the technology sector. The S&P 500 climbed 0.51% to finish at 7,743.41 points, while the Nasdaq Composite advanced 0.48% to 27,068.72 points. The Dow Jones Industrial Average led the charge among major benchmarks, rising 0.93% to settle at 51,828.62 points, according to market data reported by Reuters. Seven of the 11 S&P 500 sector indexes rose, led by information technology, which was up 0.91%, followed by a 0.6% gain in industrials.
Microsoft Rallies and Akamai Secures Anthropic Cloud Deal
Microsoft Rallies and Akamai Secures Anthropic Cloud Deal
Technology giants were key to driving the session's gains. Microsoft shares rallied 3.7%, pushing its 2026 gain to 7%, after the company revealed new capabilities within its Copilot application, featuring an advanced coding tool and an always-on artificial intelligence agent. Chipmaker Qualcomm gained 4% and Dell advanced 5%.
Meanwhile, Akamai Technologies surged 3.2% following an announcement regarding an $11.6 billion cloud services agreement with AI leader Anthropic. The arrangement includes a warrant that could grant Anthropic up to a 5% stake in Akamai.
That's a positive from the standpoint that people are still investing, deals are still being done,
said Thomas Martin, senior portfolio manager at Globalt Investments in Atlanta. It's another circular deal, so OK … but Akamai stock is up.
Not all social media and technology equities shared the upward momentum. Meta Platforms dipped 3.3%, though the company’s stock had soared about 13% during the week following a strong reception to its Muse AI agent. Analysts noted that while the new agent could benefit tech infrastructure stocks, it poses potential competitive challenges for banks, online shopping platforms, and other consumer businesses. Meanwhile, magazine publisher People Inc jumped 11% after a report said MGM Resorts International was discussing a bid for the company.
Treasury Yields Hit Multi-Year Highs as Interest Rate Scrutiny Grows
Treasury Yields Hit Multi-Year Highs as Interest Rate Scrutiny Grows
Despite the equity rally, macroeconomic pressures persisted in the background. The yield on the benchmark U.S. 10-year Treasury note climbed 3.4 basis points to 5.196%, marking a fresh 19-year high. Bond market movements reflected shifting expectations regarding monetary policy, with traders pricing in a 66% probability that the Federal Reserve will implement an interest rate increase of at least 25 basis points in October, up from approximately 50% earlier in the week, as tracked by the CME Group’s FedWatch Tool.
Energy markets also influenced investor sentiment. Brent crude eased but remained above $100 a barrel, sustained by ongoing concerns stemming from the U.S. war with Iran and a surge in U.S. Treasury yields that kept investors on edge. Yet, market sentiment also found encouragement separately through information indicating that American and Iranian officials kept discussing a gradual exit strategy from the conflict, centered around Tehran reopening the Strait of Hormuz alongside Washington lifting its trade embargo.
Valuations and Broader Market Performance
Valuations and Broader Market Performance
Market analysts pointed out that even with the recent volatility, stock valuations remain restrained relative to expected earnings. The S&P 500 this week traded at just under 19 times expected earnings, marking its lowest valuation since 2023, according to LSEG data. AI-related heavyweights are responsible for much of the recent increase in earnings expectations, and data showed strong AI-related capital expenditures boosted demand for key manufactured capital goods, outpacing expectations in August.
For the week as a whole, the S&P 500 gained 1.2%, while the Nasdaq rose 2% for the week after it notched a record-high close on Tuesday. President Donald Trump reported that he engaged in a very productive meeting
alongside President Xi Jinping, coming on the heels of a three-day summit focused more on interpersonal diplomacy than major economic breakthroughs.
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