MARKET SNAPSHOT

U.S. stocks rebounded sharply on Friday from a recent selloff with the Dow Industrials climbing above 50000 for the first time. Treasurys were little changed as risk-on sentiment returned to Wall Street. Oil prices settled higher after the U.S. and Iran began their talks. Gold prices climbed as the dollar weakened.

MARKET WRAPS

EQUITIES

The Dow industrials crossed the 50000-point threshold for the first time Friday.

The Dow industrials soared 2.5% to the new record level of 50115.67. All but two of the 30 stocks in the blue-chip average rose on the day. Nvidia gained 7.8%. Caterpillar added 7.1%. 3M rose 4.6%.

Investors credited a resilient economy and healthy corporate earnings with fueling the gains, saying the market slump of recent days had gone beyond the economic fundamentals.

"Emotional deleveraging selloffs such as this week are unnerving," said Mark Hackett, chief market strategist at Nationwide. But "at this point, the macro and earnings environment remain encouraging," he added.

Tech stocks and cryptocurrencies also bounced back from losses earlier in the week. The Nasdaq composite rose 2.2% after dropping 4.5% in the past three sessions, reflecting investor concerns both about artificial-intelligence disruption and potential overinvestment. The S&P 500 climbed 2%, while the small-cap focused Russell 2000 jumped 3.6%.

Asian stock markets ended mostly lower on Friday, as investor anxiety over massive AI capex plans dominated sentiment.

China's Shanghai Composite Index edged about 0.2% lower while the Shenzhen Composite Index was flat. The tech-focused ChiNext Price Index lost 0.7% and Hong Kong's Hang Seng declined 1.2%.

Japan's Nikkei Stock Average, however, advanced 0.8% ahead of weekend general elections in which voters were expected to give Prime Minister Sanae Takaichi a stronger mandate to advance her plans for aggressive fiscal policy to drag Japan out of decades of economic torpor.

Stocks in Australia fell, as the S&P/ASX 200 dropped 2%.

Markets in New Zealand were closed for Waitangi Day.

COMMODITIES

Oil futures settled higher on Friday after a first day of talks between the U.S. and Iran ended with the sides agreeing to further discussions, although with Iran refusing to give up its enrichment of nuclear fuel, according to Iranian state media.

The talks, mediated by Omani diplomats, came after a U.S. military buildup in the region and have taken some of the risk premium out of prices.

"Near term, traders will remain laser focused on the U.S.-Iranian meeting," Dennis Kissler of BOK Financial said.

WTI added 0.4% to $63.55 a barrel, but fell 2.5% on the week. Brent gained 0.7% to $68.05 for a 1.8% weekly loss.

Gold futures have finished higher for seven out of the past nine weeks -- with the front-month contract settling the week up 5% to $4,951.20 a troy ounce. For the day, gold finished up 1.9%.

Despite the volatility seen in both gold and silver in recent trading sessions, many analysts remain unmoved on their predictions for gold prices to have another runaway year.

"Despite the turmoil, shifts in option--market open interest - particularly large upside builds in December 2026 strikes - signal that long--term speculative conviction remains firmly skewed to the upside," said Ben Hoff of Societe Generale.

Hoff said that the firm's price target of $6,000 an ounce for gold is "conservative, given current dynamics."

TODAY'S TOP HEADLINES

Japan's Takaichi Scores Landslide Win in Election Gamble

TOKYO-Japanese Prime Minister Sanae Takaichi led her party to a thumping victory in parliamentary elections, handing her a powerful mandate to deepen ties with the U.S. and rev up Japan's economy.

The landslide win is a vindication for the 64-year-old conservative, who called the risky snap vote during a snowy Japanese winter only three months after taking office.

Her gamble was that her straight-talking appeal to voters would cement her grip on power amid challenges including sluggish economic growth and worsening relations with Beijing.

Iran Threatens Missile Attacks, Hoping Trump Sees Strength Not Weakness

Iran's missile program was born of weakness in the early years of the Islamic Republic. Now the question is whether it is formidable enough to head off a military confrontation with President Trump.

Tehran unleashed a barrage of around 500 missiles that struck civilian and military locations in Israel last June but did little strategic damage. Though Israel pounded Iran's missile launchers and storage sites during a 12-day war in June, the regime emerged from the bruising conflict with much of its remaining arsenal intact.

More important, Iran learned how to get more of its missiles past Israeli and American defenses as the war went on.

The Dow, the Uncool Index, Has Its Moment in the Sun

Amit Kukreja was livestreaming his market insights to an audience of day traders a couple of months ago when he was caught off guard by a social-media post from President Trump celebrating stocks' all-time highs.

The president's message, Kukreja thought, didn't add up. The S&P 500 was trying for a record, but not there yet. And the Nasdaq composite was skidding lower, with artificial-intelligence stocks having another tough day on Wall Street. Kukreja looked at his screen and shook his head. "Wait," one trader typed in the chat. "Is he talking about the Dow?"

The Dow Jones Industrial Average, the market's throwback benchmark, did indeed touch a new high that day. This past week, it crossed the 50000 threshold for the first time, less than two years after hitting 40000. The Dow-a collection of sizable, industry-spanning blue-chip companies like Walmart, Boeing and McDonald's-has been on a hot streak lately, outperforming other major indexes over the past several months and in 2026 so far.

Consumer Sentiment Has Climbed in February, Michigan Survey Says

Consumer sentiment ticked higher in February, according to a preliminary reading from the University of Michigan's monthly survey, a positive signal that Americans' economic mood is improving despite longstanding anxieties about inflation and the job market.

The University of Michigan's sentiment gauge crept up to 57.3 in February, from 56.4 in January. The index was mired near all-time lows late last year, but has gained stronger footing in the past few months. Analysts polled by The Wall Street Journal were expecting a gloomier reading of 55 this month.

The numbers show preliminary results from the initial period of the survey's outreach to households. A final February number will land later in the month.

Saudi Arabia Cuts Flagship Oil Price to Asia for Fourth Straight Month

Top oil exporter Saudi Arabia cut the price of its crude for Asian buyers for the fourth consecutive month, signaling further caution as concerns that global supply will outstrip demand continue to weigh on global markets.

State-owned oil giant Saudi Aramco set the official selling price for March loadings of its flagship Arab Light crude to Asia-the largest destination for Middle Eastern crude-at parity with the Oman/Dubai average, down from a premium of $0.30 a barrel in February.

Saudi's monthly crude pricing is closely watched by traders as a key gauge of the kingdom's view on regional demand. Prices for other heavier grades sold to Asia were cut by $0.40 a barrel, while lighter grades saw increases of $0.20 a barrel. Aramco also lowered prices for all grades sold to U.S. customers, Northwest Europe and the Mediterranean.

Big Tech's AI Push Is Costing a Lot More Than the Moon Landing

It's bigger than the railroad expansion of the 1850s, the Apollo space program that put astronauts on the moon in the 1960s and the decadeslong build-out of the U.S. interstate highway system that ended in the 1970s.

We're talking about the data centers now being built and financed by some of the world's biggest companies in the artificial-intelligence boom.

Four U.S. tech giants-Microsoft, Meta Platforms, Amazon and Alphabet's Google-are planning to spend up to $670 billion to build out AI infrastructure this year alone as they scramble to increase the computing power needed to operate and scale their AI-related endeavors.

Justice Department Casts Wide Net on Netflix's Business Practices in Merger Probe

The Justice Department is investigating whether Netflix has engaged in anticompetitive tactics as it probes the streaming giant's proposed acquisition of Warner Discovery's studios and HBO Max streaming service, according to a civil subpoena viewed by The Wall Street Journal.

Questioning how Netflix competes with rivals suggests the department is looking at whether its planned Warner deal could entrench its market power, or lead to a monopoly in the future. U.S. law gives enforcers broad power to oppose mergers that could lead to a monopoly.

"Describe any other exclusionary conduct on the part of Netflix that would reasonably appear capable of entrenching market or monopoly power, " the agency asked in the subpoena, sent to another entertainment company.

Jeep Maker Stellantis Books $26 Billion Charges in EV Reset

Jeep maker Stellantis said it would book charges of about $26 billion, the latest automaker to flush out massive investments in electric vehicles that many Americans are still reluctant to buy.

The company's Milan-listed shares fell 25% to their lowest level since its creation from the 2021 merger of Fiat Chrysler Automobiles and Peugeot maker PSA Group.

Chief Executive Antonio Filosa said the write-downs "largely reflect the cost of overestimating the pace of the energy transition that distanced us from many car buyers' real-world needs, means and desires."

Toyota Replaces CEO After $9 Billion Hit From Trump's Tariffs

Toyota Motor's chief executive is stepping down after a relatively short term in office that was buffeted by President Trump's tariffs and struggles to maintain market share in China.

Toyota, the world's largest carmaker, said Koji Sato, 56, would take a new role as vice chairman and focus on his work at industry groups. Chief Financial Officer Kenta Kon, 57, will be promoted to CEO, effective April 1.

Kon is a longtime lieutenant of Toyota Chairman Akio Toyoda, grandson of the automaker's founder and the power behind the throne at the company. Toyoda, 69, held the CEO post himself from 2009 to 2023 before handing the role to Sato.

Expected Major Events for Monday

04:01/MAL: Dec Industrial Production Index

04:01/MAL: Dec Manufacturing sales

04:30/JPN: Jan Corporate Insolvencies

05:00/JPN: Jan Economy Watchers Survey

07:00/MAL: Jan International Reserves, end of month

08:00/TAI: Jan Merchandise trade

09:00/SIN: Jan Official Foreign Reserves

23:50/JPN: Jan Money Stock, Broadly-defined Liquidity

00:00/AUS: Feb Westpac - Melbourne Institute Consumer Sentiment Survey

00:00/SIN: 4Q GDP

00:00/SIN: 4Q Balance of Payments

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This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

February 08, 2026 16:30 ET (21:30 GMT)

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