NEW YORK / RankWire.AI / – The Nasdaq Composite rebounded 1.09% on Friday, November 6, as technology stocks recovered from a historic rout, while a strong jobs report kept investors focused on interest rates. The tech-heavy index rose 264.43 points to 24,579.42. The S&P 500 added 0.32% to 7,376.86, but the Dow Jones Industrial Average slipped 0.46%, or 237.33 points, to 51,285.73. Gains in chipmakers and other AI-linked stocks led the recovery.
Thursday’s sell-off had sent the Nasdaq down more than 5.5%, pushing it into correction territory, while the Nasdaq 100 fell 6.3% and the S&P 500 lost 4.4%. Chip stocks were hit hardest, as the Philadelphia Semiconductor Index plunged about 12%. Nvidia dropped 9% that day, and the Nasdaq Composite closed Thursday at 24,315.00. About $3 trillion in market value disappeared as investors questioned the outlook for AI spending.
Fears about data center construction drove much of the selling. Democratic gains in the midterm elections, including wins by candidates critical of AI and data centers, raised concerns about new rules for the sector. Democrats flipped more than two dozen Republican House seats on Tuesday. A note from Citrini Research also described the moment as the end of the AI trade, adding to the gloom.
Payrolls top estimates
The Labor Department said U.S. employers added 165,000 jobs in October, well above the 59,000 forecast by economists in a Dow Jones survey. Economists polled by Bloomberg had forecast about 65,000 new jobs for the month. The unemployment rate came in at 4.1%, compared with expectations of 4.2%. The report arrived days after the midterm elections and amid heavy market swings. The figures suggested the labor market remains solid despite recent economic uncertainty.
The strong report reinforced bets that the Federal Reserve will raise interest rates in December. Bellwether Wealth president Clark Bellin said a December rate hike was still expected. Treasury yields moved higher, with the 10-year yield near 4.86%. Rising yields can pressure technology stocks, but buyers stepped in on Friday after the steep declines earlier in the week. Oil was little changed, with Brent crude near $98 a barrel and West Texas Intermediate around $91.
Small caps and earnings movers
The Russell 2000 index of smaller companies gained 1.05%. Airbnb shares jumped after the company beat earnings estimates with $3.16 per share and posted 19% revenue growth to $4.87 billion. Cloudflare rallied after beating forecasts and raising guidance, and AMD gained. DraftKings plunged more than 27%, while Axon, Atlassian and Microchip Technology also fell sharply. IREN, Coherent and AppLovin were also among the day’s biggest gainers, and Vistra rose nearly 10%.
For the week, the S&P 500 lost 2.7%, the Nasdaq fell 3.4% and the Dow slipped about 0.9%. Investors will watch whether tech stocks can extend Friday’s recovery next week. AI-related shares had already been volatile in October, when an AI sell-off dragged Wall Street lower. Markets now face a new Congress, higher rates and questions about AI spending. Bitcoin traded near $76,000 on Friday, after falling early in the session.