Wall Street Equities Rally as Meta AI Tool Boosts Tech

Wall Street equities recovered this week, with the Nasdaq 100 gaining 3.3% and the S&P 500 recording its first positive week of the month. This bounceback was driven by economic resilience and AI-fueled earnings, specifically led by Meta Platforms Inc., which rallied nearly 13% following the release of its Muse AI tool.

Oil prices declined on Friday amid reports of a potential diplomatic breakthrough between the United States and Iran to reopen the Strait of Hormuz. However, investors continue to face significant volatility in the bond market, where the 30-year Treasury yield reached 5.53%, its highest level since 2004.

This high-yield environment has pushed investors away from traditional long-duration bonds toward dividend-equity ETFs, option-income ETFs, and liquid alternatives to avoid duration risk. Consequently, asset allocation within ETFs has shifted toward an 80/20 split, with equities now comprising roughly 80% of all ETF assets.