NEW YORK — The S&P 500 posted modest gains during a volatile trading session on Friday as investors weighed strength in parts of the technology sector against persistent concerns over inflation, interest rates and corporate earnings, according to market data and analysts.
Trading fluctuated throughout the session, with major U.S. indexes moving between gains and losses before the S&P 500 finished slightly higher. Market participants continued to monitor economic indicators and expectations for U.S. Federal Reserve policy after recent data reinforced uncertainty over the timing of any changes to interest rates.
Technology shares remained a key driver of market movements, although performance across the sector was mixed. Semiconductor stocks experienced sharp swings during the week as investors reassessed expectations for returns on artificial intelligence-related investments. Healthcare shares also provided support to broader markets in parts of the session, according to market reports.
David Stubbs, chief investment strategist at AlphaCore Wealth Advisory, said questions surrounding artificial intelligence investments remained in focus. "The questions around profitability and the capex story are certainly not going away," he said, referring to investor concerns over the pace at which large technology companies may generate returns from heavy spending on AI infrastructure.
Investors also looked ahead to upcoming U.S. economic releases, including employment data expected next week, which could influence expectations for monetary policy. According to Reuters, recent inflation readings have kept attention on whether the Federal Reserve will maintain a restrictive policy stance for longer than previously anticipated.
Market participants said geopolitical developments and movements in energy prices also remained on investors' radar, contributing to elevated day-to-day volatility. Analysts noted that shifting sentiment toward technology companies and broader macroeconomic uncertainty continued to influence trading activity across U.S. equities.
Despite Friday's modest advance, trading over the past week reflected uneven investor sentiment, with sharp moves in technology stocks offset by gains in other sectors at various points. Analysts said markets remained sensitive to incoming economic data and company-specific developments as the second-quarter earnings season approached.
At the close of trading on Friday, the S&P 500 had recorded only a modest change from the previous session, while investors continued to await fresh economic data and corporate results that could provide further direction for financial markets.
