AI Enthusiasm Boosts Wall Street Amid Economic Uncertainty

Major Wall Street indexes edged higher, spurred by renewed interest in AI and chip stocks, despite economic uncertainties involving the Federal Reserve and geopolitical tensions. The financial sector struggled, while sectors like consumer staples and utilities saw gains. Meanwhile, the dollar remained strong, and oil prices rose amid Iran concerns.

In a volatile trading session on Friday, key Wall Street indexes saw gains thanks to a reignited enthusiasm for AI and chip stocks. However, this positive shift was countered by ongoing economic uncertainties stemming from Federal Reserve interest rate strategies and geopolitical issues.

The financial sector recorded its toughest week since October, affected by a proposed cap on credit card interest rates by President Trump. Simultaneously, sectors such as consumer staples, real estate, and utilities led the charge with weekly gains.

The U.S. dollar maintained its strength, marking its third consecutive weekly gain. Oil prices increased amid lingering concerns over unrest in Iran, while gold saw a decline as investors cashed in on profits, resulting in a mixed bag for safe-haven assets.

(With inputs from agencies.)