Nasdaq Index: Apple and Atlassian Lift Tech Stocks Today, but Exxon Struggles

Stocks Rise as Apple Gains, Inflation Data Stirs Rate Speculation

Stocks pushed higher Friday, driven by Apple’s earnings beat and a key inflation report that kept traders focused on the Federal Reserve’s next move. The S&P 500 rose 0.6%, while the Nasdaq Composite outperformed with a 1.2% gain. The Dow Jones Industrial Average lagged, adding just 27 points, or 0.1%.

Apple climbed 3% after reporting stronger-than-expected fiscal first-quarter results. While iPhone sales disappointed, services revenue provided a bright spot. Meanwhile, the December personal consumption expenditures (PCE) price index rose 0.3% for the month and 2.6% year-over-year, in line with expectations but marking a slight uptick from the prior month’s pace. The data raised questions about the Fed’s rate path as core PCE also climbed 2.8% on an annual basis.

Friday’s gains capped a volatile week where only the Dow appeared set for a positive finish. Despite a rocky January, all three major indexes remained in the green for the month, with the Dow up 5.7%, the S&P 500 gaining 3.6%, and the Nasdaq advancing 2.7%.

Can Tech Earnings Keep Driving the Market Higher?

Tech stocks continued to lead the market, with Apple’s strength providing a tailwind. Atlassian soared 18% after smashing earnings estimates, hitting a 52-week high as AI-powered software demand surged. The company’s cloud and data center business drove 30% subscription revenue growth, with management raising guidance for the next quarter.

Morgan Stanley analysts noted Atlassian’s AI traction, highlighting its “strong yield” from recent investments. The company has positioned itself alongside tech giants in the AI race, tapping OpenAI to enhance its Jira and Confluence products.

Is Energy’s Weakness a Warning Sign?

Energy stocks struggled as refining margins dragged down earnings for Exxon Mobil and Chevron. Exxon managed to offset some weakness with higher oil production and cost-cutting measures, but shares still fell more than 1%. Chevron fared worse, dropping nearly 3% after posting its first refining loss since 2020. Analysts warned that weaker margins could continue to pressure results.

The S&P 500 energy sector dropped 2.1% Friday, making it the worst performer of the session. Over the past year, Exxon shares have climbed 6%, while Chevron has gained 4%, trailing broader market returns.

What’s Next for the Market?

Traders remain focused on earnings and inflation trends heading into February. The PCE data suggests inflation remains sticky, complicating expectations for aggressive Fed rate cuts. However, strong corporate earnings—especially from tech—are keeping the rally intact.

With major indexes holding monthly gains and investors leaning into earnings season, the bullish momentum looks set to continue. Tech remains the key driver, but broader market participation will be needed to sustain further upside. Eyes now turn to upcoming economic reports and whether they reinforce or challenge expectations for the Fed’s rate path.

More Information in our Economic Calendar.