At the close, the Dow Jones Industrial Average had risen 1.1 percent, the broad S&P 500 index 1 percent and the Nasdaq's technology-heavy composite index 0.9 percent.
This week has been marked by volatile trading amid concerns that AI stocks in general are overvalued. But on Wednesday, semiconductor giant Nvidia added fuel to the flames with a quarterly report that beat expectations.
On Friday, four of the seven heavily indexed technology companies known as "the magnificent seven" – all on the list of the world's ten most valuable listed companies – performed well and helped to lift the stock market as a whole.
Google's parent company Alphabet was the best performer, rising 3.5 percent. It was also the only stock of the seven to gain for the week as a whole, reflecting the fragility of the AI-focused tech sector.
Industry colleague Oracle fared worse, falling 5.7 percent.
Interest rate statement pleased
Eli Lilly closed up 1.6 percent and was valued at over $1 trillion during the day, the first pharmaceutical company to reach that mark.
Market analysts also found good news in a statement in which John Williams, one of the top officials at the Federal Reserve (Fed), said he saw room for more cuts in the key interest rate soon.
The Fed is next scheduled to decide on interest rates on December 10. On Friday, the market priced in a 70 percent probability of a quarter-percentage point cut, compared to 40 percent on Thursday.
“Not changed”
The cryptocurrency bitcoin had another tough day and continued its rapid decline, now down 2.4 percent to $84,466. This compares to the record high of $126,251 on October 6.
Mark Hackett, chief strategist at mortgage giant Nationwide, believes that the most important starting points for investors' actions are actually the same as before, even if the ground has started to shake a little.
The bigger story hasn't changed, it's being completely tested right now, he tells Bloomberg news agency.
Over the week, the Dow Jones Industrial Average and the S&P 500 both fell 1.9 percent and the Nasdaq Composite Index fell 2.7 percent.
