S&P futures experienced an uptick on Friday morning, propelled by a rally in the banking and technology sectors that enhanced the performance of the major averages. S&P 500 futures increased by 0.26%, while Dow Jones Industrial Average futures rose by 57 points, equivalent to 0.12%. Nasdaq 100 futures saw an advancement of 0.25%. Major U.S. stock indexes experienced a broad rally during Thursday’s regular trading session. The S&P 500 and the Nasdaq Composite experienced an increase of nearly 0.3%, whereas the 30-stock Dow saw a rise of 0.6%. The small-cap Russell 2000 index demonstrated superior performance, increasing by nearly 0.9%.

Chip stocks emerged as significant beneficiaries in the session following the impressive fourth-quarter results from Taiwan Semiconductor Manufacturing Company, rekindling optimism surrounding the artificial intelligence sector. Taiwan Semi experienced an increase exceeding 4%, whereas Nvidia and AMD both saw gains of approximately 2% each. Additionally, the United States and Taiwan have finalized a trade agreement that mandates Taiwanese chip and technology firms to allocate a minimum of $250 billion towards enhancing production capacity within the United States.

Bank stocks experienced an uptick following the robust fourth-quarter results reported. Goldman shares experienced an increase exceeding 4%, whereas Morgan Stanley saw an uptick of almost 6%. “The fundamentals are indeed robust. One should seek above-average earnings growth, margins, and sales revenue, particularly in light of the Federal Reserve’s anticipated interest rate cuts this year. That’s all positive,” stated Larry Adam. Indeed, Adam expressed a degree of caution as he approaches 2026, noting that risks to the market’s gains stem from elevated valuations and high retail investor equity exposure, which could amplify volatility around the midterm election period.

Investors are poised to conclude a tumultuous week, characterized by a series of developments emanating from Washington, encompassing increased geopolitical tensions in Iran and Greenland as well as concerns regarding potential challenges to the autonomy of the Federal Reserve. The major averages are poised to conclude the week with losses, as the S&P 500 has declined by 0.3% and the Nasdaq has experienced a decrease of 0.6% during this timeframe, while the Dow has slipped 0.1% on a week-to-date basis. In other markets, European stocks experienced a modest decline on Friday as investors remain vigilant regarding geopolitical tensions.