U.S. stocks rallied after the opening bell Friday as investors leaned into the AI infrastructure trade while looking past elevated energy prices and uncertainty around a leadership change at the Federal Reserve. The Dow Jones Industrial Average rose to 50,640.01, the S&P 500 climbed to 7,490.73, and the Nasdaq Composite advanced to 26,453.90.
The early move suggested investors were treating the AI spending boom as a durable earnings catalyst rather than a warning sign. Apollo Global Management Chief Economist Torsten Slok said the S&P 500 information-technology sector now accounts for more than one-third of total S&P 500 capital expenditures, with the share rising to a record 35% as hyperscalers race to build AI infrastructure.
That theme was reinforced by Zoom Video Communications, which became an early-session focal point after stronger results and guidance. Wedbush highlighted Zoom, which reported fiscal first-quarter revenue of $1.239 billion, up 5% from a year earlier, above Wall Street expectations, while AI Companion paid users grew 184% year over year.
Wedbush maintained its Outperform rating and raised its price target to $120 from $110, saying Zoom’s AI monetization story is gaining momentum.
Investors were also watching Washington, where President Donald Trump will swear in Kevin Warsh at 11 a.m. as Federal Reserve chair. Warsh takes over as markets debate whether inflation pressure from energy prices and strong capital spending will limit the Fed’s room to ease policy.
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Energy prices remain a problem for consumers. Crude oil traded at $96.65, up 0.31%, while Yahoo Finance reported that gasoline prices in all 50 states were above $4 ahead of Memorial Day weekend, with AAA data showing the national average at $4.56 a gallon.
Investors looking for alternatives that can produce results on the AI trade might consider a recent blog from VanEck's Coulter Regal. He argues that electricity is becoming a strategic asset as data-center growth strains grid capacity, a thesis that could keep investor attention on utilities, power equipment, and natural-resources infrastructure.
For now, the market’s message appears clear: investors are willing to pay for AI-linked growth, even with high oil prices, expensive gasoline, and the Fed entering a new era.