Stock Market Today: Dow Soars 800 Points As Nvidia Jumps 7%; Robinhood Surges (Live Coverage)

U.S. equities roared back to life on Friday, with the Dow Jones Industrial Average staging a massive 800-point rally as investors cheered strong economic data that eased recession fears without stoking immediate inflation concerns. The broad-based buying frenzy was powerful enough to overshadow a significant post-earnings plunge in Amazon, while the technology sector saw a dramatic split, with AI-darling Nvidia surging while other mega-caps lagged.

The market's "risk-on" sentiment was palpable across asset classes. A rebound in cryptocurrency prices helped propel shares of trading platform Robinhood to double-digit gains, signaling a potential revival in retail investor activity. Today's session marks a sharp reversal from recent volatility, driven by a complex interplay of macroeconomic optimism and company-specific earnings narratives.

Market Snapshot: The Numbers

All three major indexes finished the session deep in positive territory, though the blue-chip Dow led the charge, reflecting a rotation into cyclical and value-oriented stocks.

Dow Jones Industrial Average (DJIA)

• Close: 39,872.99
• Change: +823.54 (+2.11%)

S&P 500 (SPX)

• Close: 5,315.22
• Change: +61.47 (+1.17%)

Nasdaq Composite (IXIC)

• Close: 16,889.36
• Change: +144.91 (+0.87%)

Why It Matters: A Broad-Based Rally on "Goldilocks" Data

Friday's surge was not driven by a single stock but by a fundamental shift in market sentiment following the morning's pivotal jobs report. The data provided a "Goldilocks" scenario—not too hot, not too cold—that gave bulls the green light to buy.

• The Jobs Report: The Bureau of Labor Statistics reported that the U.S. economy added more jobs than anticipated last month. However, wage growth came in slightly cooler than expected. This combination suggests a resilient labor market that can support economic growth, but without the kind of wage-price spiral that would force the Federal Reserve into a more hawkish stance.

• Fed Implications: For weeks, the market has been whipsawed by fears of "stagflation" (stagnant growth, high inflation). Today's data alleviates both concerns simultaneously. Traders are now pricing in a higher probability that the Fed can orchestrate a "soft landing" and may have more flexibility to consider rate cuts later this year if disinflationary trends continue.

• Sector Rotation: The nature of the economic data fueled a rally in economically sensitive sectors. Banks like Goldman Sachs and JPMorgan Chase surged on the prospect of a stronger economy. Industrials, including Caterpillar, and energy stocks also posted significant gains as recessionary fears abated.

Big Tech's Divergent Paths

While the broader market celebrated, the earnings season continued to create clear winners and losers within the mega-cap technology space, highlighting the market's increasingly selective nature.

Nvidia's AI-Fueled Ascent

Nvidia (NVDA) was the standout performer in the Nasdaq 100, jumping over 7% to close at a new multi-week high. The chipmaker continues to be the primary beneficiary of the artificial intelligence boom, and investor appetite for its shares appears insatiable.

• Catalyst for the Surge: The rally was ignited by a major analyst upgrade from a prominent Wall Street bank, which raised its price target on the stock by 20%. The report cited unabated demand for Nvidia's H100 and forthcoming B200 GPUs from cloud service providers and enterprise clients, dismissing concerns of a potential slowdown.

• Broader AI Sentiment: Nvidia's move lifted other AI-related stocks, including Super Micro Computer (SMCI) and Advanced Micro Devices (AMD). It reinforces the thesis that, for now, AI infrastructure remains the most durable and powerful growth theme in the entire market.

Amazon's Post-Earnings Plunge

In a stark contrast, Amazon (AMZN) shares tumbled more than 8%, acting as a major drag on the S&P 500 and Nasdaq. The e-commerce and cloud giant became the latest mega-cap to be punished for a less-than-perfect report.

• The Earnings Disconnect: While Amazon's first-quarter results were solid, driven by another quarter of accelerating growth in its profitable Amazon Web Services (AWS) cloud division, its forward guidance for the second quarter disappointed investors.

• Investor Concerns: The forecast signaled a potential slowdown in e-commerce sales and raised concerns about rising capital expenditures related to building out its AI and logistics infrastructure. This combination of slowing top-line growth in its core retail business and rising costs spooked shareholders, who sent the stock to its worst single-day performance in over a year.

The Retail Trading Resurgence

A notable subplot of Friday's session was the renewed vigor in assets favored by retail investors, chiefly cryptocurrencies and the platforms used to trade them.

Robinhood Catches a Bid

Shares of Robinhood (HOOD) surged an impressive 14% after its latest quarterly report showed a significant uptick in user activity and profitability, largely thanks to the volatile but upward-trending crypto market.

• Earnings Beat: The company reported revenue and earnings per share that comfortably beat analyst expectations. Management noted a substantial increase in transaction-based revenues, particularly from cryptocurrency trading during the first quarter.

• Crypto's Contribution: The results underscore how tightly Robinhood's fortunes are tied to the crypto market. The bounce in Bitcoin and other digital assets directly translates into higher trading volumes and revenue for the platform, a trend that investors rewarded handsomely today.

Bitcoin Bounces Back

The price of Bitcoin (BTC) served as a key barometer for risk appetite, rebounding sharply after a recent sell-off.

• Risk-On Appetite: Bitcoin climbed over 5% to reclaim the $66,000 level. The move was part of a wider embrace of riskier assets, as the encouraging economic data led investors to move capital out of safe havens like the U.S. dollar and into growth-oriented assets.

• Technical Rebound: After dipping below key technical support levels earlier in the week, the asset's strong bounce suggests that dip-buyers remain active, viewing the recent pullback as a consolidation phase rather than the start of a new bear market.

The Bottom Line

Friday's session delivered a powerful message of optimism about the U.S. economy, but it was layered with nuance. While the macroeconomic backdrop appears to be improving, the market is no longer lifting all boats equally. Earnings season has proven that investors are scrutinizing individual company fundamentals, punishing even the slightest imperfection in guidance, as seen with Amazon.

Looking ahead, the market will be laser-focused on next week's inflation data (CPI and PPI) to see if the disinflationary trend remains intact. Any deviation from that narrative could quickly undo today's rally. For now, however, the bulls are back in control, fueled by a resilient economy and the enduring promise of artificial intelligence.