Stocks closed sharply higher for a second time in as many days this holiday-shortened trading week, although Nvidia and other semiconductor shares fell on a report Meta Platforms may use Google's AI chips in their data centers.

Investors parsed fresh economic data and doubled down on bets the Federal Reserve will cut interest rates in December.

NASDAQ gained strong upside momentum as traders rushed to buy tech stocks. Broadcom, which was up by 10.3%, was the best performer in the NASDAQ index today. Micron and Tesla were among the biggest gainers in today’s trading session.

The CNN Money Fear and Greed index showed easing fear levels on Tuesday, while U.S. stocks closed higher with Dow Jones surging 650 points.

Investors have worried about lofty technology valuations amid concerns over steep artificial intelligence spending.

The Dow Jones Index has pulled back in the past few days, moving from the year-to-date high of $48,416 to the current $47,457.

NASDAQ moved higher amid strong demand for tech stocks. Strategy, which was up by 4.3%, was among the biggest gainers in the NASDAQ index today. The stock gained ground as Bitcoin climbed above the $90,000 level.

Major stock indexes closed sharply higher Friday, but nevertheless posted weekly losses on concerns about AI spending and valuations of big tech firms.

U.S. stocks settled lower on Thursday, with the Dow Jones index dipping around 800 points during the session despite federal agencies reopening after the longest government shutdown in U.S. history, as investors aggressively repriced Fed rate-cut expectations following a wave of hawkish remarks from central bank officials.