Shares in major technology and artificial intelligence firms showed signs of recovery on Friday following a severe sell-off that erased trillions of dollars in market valuation. The tech-focused Nasdaq Composite opened higher and stabilized around 1.7% above its previous close by midday, regaining a portion of the 5.5% drop experienced during the sharp market downturn.
The market rout began in the United States on Thursday before spreading to Asian and European trading floors. Investors had been liquidating technology holdings partly over concerns that a Democratic victory in the midterm elections could result in tighter regulations and slower artificial intelligence development. Several campaigning Democrats advocated for new rules governing AI technologies and data centers after gaining control of both houses of Congress and key state positions.
Despite the regulatory concerns, US President Donald Trump publicly reaffirmed his support for advanced artificial intelligence on Friday, arguing that rejecting the financial potential of the sector would be foolish. However, broader market anxiety remains over whether the massive capital investments currently flowing into AI infrastructure will deliver expected financial returns.
Mixed Regional Markets and Sector Performance
Individual stock performances reflected a partial rebound on Friday morning. Semiconductor giant Nvidia rose by roughly 4% by lunchtime after dropping more than 9% the previous day. Other chipmakers saw significant volatility; AMD climbed approximately 12% following a 17% drop, while Micron gained over 8% after a similar decline. Shares in SpaceX and Tesla also recorded gains of more than 6% and nearly 5%, respectively.
While US indexes stabilized, international markets experienced continued pressure. South Korea’s Kospi index closed 6% lower on Friday, dragged down by a plunge of over 10% in chipmaker SK Hynix. Major stock indexes in Germany, France, and Spain also ended the day in negative territory, while the UK’s FTSE 100 fell by 1.01% as investors digested interest rate decisions from the Bank of England.
Economic Data Provides Support
Uncertainty in the financial sector was partially offset by unexpectedly strong economic data from the US Bureau of Labor Statistics. The latest report revealed that American employers added 165,000 jobs in October, vastly exceeding analyst predictions and the average monthly rate. The national unemployment rate edged lower to 4.1%, continuing a stable trend maintained since March.
Market analysts noted that while political shifts and high valuations have sparked a clear change in investor sentiment, strong employment figures suggest the underlying economy remains robust. Analysts expect the coming trading week to provide a clearer signal on whether the technology sector recovery will hold.
Source: BBC News
