The Nasdaq Composite rebounded on Friday, rising 1.28% after a sell-off pushed the index into correction territory, while the Dow Jones Industrial Average slipped 0.92% and the S&P 500 edged up 0.38%.
Technology and chip stocks came under pressure Thursday as investors weighed the implications of Democrats’ midterm election victories for AI regulation and data center development.
The sell-off followed a broad market rally the previous day, as the political risk premium unwound following the election results, with eToro analyst Jakub Rochlitz noting that markets were pricing in the midterm outcomes.
October payrolls came in stronger than forecast, with the economy adding 165,000 jobs against expectations of 65,000, driving the unemployment rate down to 4.1%. However, wage growth remained below inflation, though it improved more than anticipated last month, according to Heather Long, chief economist at Navy Federal Credit Union.
The mixed economic data and continued AI sector volatility underscored ongoing turbulence in the tech-driven market rally.
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