Tech Bounces Back at the Open, but Nike Trips Hard on China Weakness

Reuters, Axios, and Investor’s Business Daily contributed to this report.

Wall Street started Friday in a better mood, with the major indexes ticking higher as big tech kept rebounding from the selloff earlier this week. The Dow opened up 87 points (0.21%) to 48,051.77, the S&P 500 gained 0.33% to 6,795.42, and the Nasdaq climbed 0.51% to 23,111.63.

Part of the lift is coming from Thursday’s surprise inflation cooldown — delayed data, but still enough to get investors thinking the Federal Reserve might have more room to cut rates next year than previously expected. More cuts, in theory, means easier financial conditions and a friendlier backdrop for stocks.

The big question now is whether a looser Fed could finally spread the rally beyond the same familiar tech giants. JPMorgan equity strategist Dubravko Lakos-Bujas said on an outlook call that deeper-than-expected easing could help push the S&P 500 past 8,000 in 2026 — about an 18% jump from current levels. The pitch: if rates fall while growth holds up, more corners of the market can start pulling their weight.

That’s where the “rotation” talk comes in. Cyclical names tied to consumer spending — retail, autos, travel, maybe homebuilders — could get a boost if shoppers feel less squeezed. Smaller companies could also benefit because they tend to carry more debt, meaning rate cuts can hit their bottom line faster. Financials could catch a bid too if lending activity picks up.

But there’s a catch: if the Fed ends up cutting because the economy is slowing — or if inflation stays sticky — investors may keep leaning on tech anyway. As Truist’s Keith Lerner put it, tech makes up almost half of the S&P 500 by market cap, and for those mega-cap names, earnings growth matters more than interest rates.

While tech was helping set the tone, Nike was doing the opposite. Shares tumbled after quarterly results showed weak sales in China dragging on performance, sending the stock sharply lower and putting a big dent in the early optimism.

So Friday’s setup is pretty clear: tech is steadying the ship, rate-cut hopes are back in play, and the market is watching to see if this rally can broaden — or if it’s still going to be the same leaders doing all the heavy lifting.