The Dow Jones The industrial average closed above 50,000 for the first time on Friday, as stocks rallied in response to a drop in tech stocks earlier in the week.

The closely watched index rose above 50,000 for the first time after 2:00 p.m. in the trading session on Friday, advancing 1,206.95 points, or 2.47%, to close at 50,115.67.

The S&P 500 and Nasdaq Composite also closed in the green, up 1.97% and 2.18%, respectively.

president donald trump celebrated the news in a Truth Social post Friday afternoon.

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“The Dow Jones Industrial Average just hit 50,000 for the first time in history. CONGRATULATIONS AMERICA!” Trump wrote.

The president said in a separate post: “The ‘experts’ said if I hit 50,000 in the Dow by the end of my term, I’d have done a great job, but today I hit 50,000, three years ahead of schedule – remember that for the midterms, because the Democrats are going to crash the economy!”

Chip stocks rose on expectations that they will benefit from increased spending artificial intelligence (AI) Amazon’s data centers and Google’s parent company Alphabet.

The Dow Jones Industrial Average broke above 50,000 points for the first time on Friday. (Michael Nagle/Bloomberg via Getty Images)

Shares of Nvidia, Advanced Micro Devices and Broadcom rose more than 7%. Amazon shares fell nearly 7% after it announced it planned to increase capital spending by more than 50% this year amid the AI ​​rush following a similar announcement by Alphabet Wednesday.

Friday’s gains in the S&P 500 and Nasdaq followed three straight days of losses amid AI concerns.

“Market sentiment improved after today’s positive report from the University of Michigan,” said Jeffrey Roach, chief economist at LPL Financial. “Average 1-year inflation expectations hit their lowest since January 2025, providing some comfort to investors eager to see inflation metrics improve.”

various software companies saw shares fall amid investor concerns that competition in the AI ​​space could hurt its margins, as well as questions about whether valuations have become overpriced amid the AI ​​boom.

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“This trade has been volatile and there have been sell-offs at times, but I think there is enough evidence that there is real demand for AI products, real promise with what they can do and a need for a lot of spending to get there,” said Ross Mayfield, investment strategy analyst at Baird.

“So when there’s that kind of selloff, I think there’s a floor where there’s going to be a certain set of investors that will step in and start buying those names.”

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Shares of Nvidia and other chipmakers rose amid expectations of continued investment in AI. (Loren Elliott/Bloomberg via Getty Images)

Nine of the 11 S&P 500 sector indexes rose, led by the information technology index’s gain of more than 3.7% and the industrials index’s gain of nearly 2.7%.

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Reuters contributed to this report.