Nasdaq Rallies as Chip Stocks Recover from Brutal Losses
AI regulatory concerns led to a market sell-off in the prior trading session. The Nasdaq Composite climbed on Friday after a sell-off hit artificial intelligence stocks, sending the exchange into correction territory during the prior session.
The tech-heavy Nasdaq rose 1.09%, while the Dow Jones Industrial Average fell 237.33 points, or 0.46%, to 51,285.73. The S&P 500 was up 0.31%.
Gains within technology were broadly shared, with the semiconductor index rallying 4.2%. Nvidia rose 2.8%, Advanced Micro Devices added 11%, and Sandisk rebounded almost 4%. Shares in the sector opened strongly and held much of their gains, with the Nasdaq ending up 1.1% after trading as much as 2% higher.
Technology and Chip Stocks Hit Hard on Thursday
Technology and chip stocks were among those hardest hit on Thursday as investors weighed what Democrats' sweeping midterm election victories could mean for AI regulation and data center development. The sell-off came just one day after stocks rallied following the midterm elections.
Market Movement Details
- Nasdaq Composite Index: +264.43 (1.09%)
- Dow Jones Industrial Average: -237.33 (-0.46%)
- S&P 500: +23.13 (0.31%)
Quote from Market Analyst
"The obvious catalyst for the sharp selloff is that markets are pricing in the midterm results, after yesterday saw markets rise across the board as the political risk premium unwound," said eToro market analyst Jakub Rochlitz.
Select Stock Performances
- Tesla: +4.2%
- SpaceX: +8.6%
- Atlassian: -16% (after reporting Q1 results)
- Airbnb: +12% (after raising 2026 revenue growth forecast)
Economic Data Release
U.S. payrolls data released on Friday showed the economy added 165,000 jobs in October, surpassing economists' estimate of 65,000. The unemployment rate ticked lower to 4.1%.
Impact on 401(K)s
"The encouraging news is more industries are hiring again and more people are looking for work as they see opportunities growing," said Heather Long, chief economist at Navy Federal Credit Union. "The Achilles Heel is that wages are still well below inflation, but wage growth came in stronger than expected in October."