New Zealand shares ended higher on Friday after a rally on Wall Street on Thursday, helped by renewed optimism related to artificial intelligence.

The S&P/NZX 50 Index rose 0.43% or 58.31 points to close at 13,718.10, trading close to its all time highs.

On Wall Street, the S&P closed 0.3% higher, the Nasdaq Composite gained 0.3%, and the Dow Jones rose 0.6% on Thursday.

US equities rebounded after TSMC's upbeat outlook revived confidence in the durability of a key bull-market driver, while small-cap stocks advanced on signs of underlying economic strength, according to a Friday Bloomberg report.

"Technology stocks had looked vulnerable in recent weeks as investors rotated away from megacap names and into more cyclical areas of the market," said Fawad Razaqzada at Forex.com, as quoted by Bloomberg.

U.S. President Donald Trump said on Wednesday that he has, for the time being, decided not to impose tariffs on rare earths, lithium, and other critical minerals, opting instead to direct his administration to source these materials from international trading partners, according to a Wednesday Reuters report.

In domestic news, New Zealand's manufacturing sector ended the year on a high, with December 2025 activity hitting its strongest level since December 2021, driven by rising orders, production, and employment, BusinessNZ said.

Also, food prices in New Zealand rose 4% on an annual basis in December 2025, compared with a 4.4% increase in the previous month, according to a Stats NZ selected price indexes report.

Meanwhile, New Zealand's total new lending decreased to NZ$12.79 billion in November 2025 from NZ$14.59 billion in October 2025, according to data from the Reserve Bank of New Zealand.

In corporate news, Downer EDI (ASX:DOW, NZE:DOW) received notice that Macquarie Group (ASX:MQG) and its affiliated entities are no longer substantial holders of the company from Monday.