Stocks Advance as Options Expiry Fuels Volatility, Bitcoin Jumps – US Market Wrap

US equities climbed into the final session of a busy week as investors navigated the expiration of a record volume of options that had the potential to intensify market swings. Cryptocurrencies rallied, while bonds retreated.

Gains in several technology stocks that had faced scrutiny over aggressive artificial-intelligence investment helped lift equities. A second straight advance in the S&P 500 erased its losses for the week. Megacaps led the move, with Nvidia outperforming, while Oracle surged about 7%.

Trading activity surged around the quarterly “triple witching” event, when stock options, index options, and futures contracts all expire simultaneously. An estimated $7.1 trillion in notional open interest was set to roll off, contributing to heightened turnover.

After a recent pullback driven by doubts over AI enthusiasm and uncertainty surrounding the extent of future Federal Reserve easing, investors stepped back into equities. Although this week’s economic data offered limited direction, markets continued to price in two rate cuts in 2026.

Hopes that the traditional year-end “Santa Claus rally” might still materialize were rekindled, as the period covering the final trading days of the year and the opening sessions of the next approached.

The S&P 500 rose 0.9%, while the Nasdaq 100 advanced 1.3%. Developments around TikTok’s US operations moved closer to resolution, with the company saying its American business is being acquired by a consortium led by Oracle.

Bitcoin gained roughly 3%. Treasuries, which recorded their first weekly gain since late November, weakened on Friday, pushing the 10-year US yield up three basis points to 4.15%.

In Japan, 10-year government bond yields climbed to their highest level since 1999, while the yen weakened as uncertainty lingered over the central bank’s policy outlook despite a widely anticipated interest-rate increase.