U.S. stocks rose Friday on lower inflation, boosting June rate cut hopes, but all major indices ended the week lower amid AI and tech spending concerns.

U.S. stocks edged higher Friday as cooler-than-expected January inflation data boosted the likelihood of a June interest rate cut, raising the probability to 52.3% according to CME Group’s FedWatch tool. The S&P 500 rose slightly, while the Nasdaq dipped due to declines in tech and communications stocks amid ongoing concerns about AI’s impact on profits and rising technology spending. All three major indices ended the week lower, reflecting volatility driven by AI uncertainty and pre-holiday caution.