Stocks rebound as tech gains follow selloff that pushed Nasdaq into correction
Markets recover unevenly
The S&P 500 added 72 points, or nearly 1%, in early Friday trading. The Nasdaq Composite climbed 437 points, or 1.8%, while the Dow Jones Industrial Average slipped 129 points, or 0.2%.
The gains followed a sharp reversal on Thursday. Markets had surged after the midterm elections earlier in the week, then fell as investors weighed possible effects of Democratic victories on data center development and artificial intelligence spending.
Nasdaq enters correction
The Nasdaq lost more than 1,400 points on Thursday, bringing it into correction territory. A correction occurs when an index falls at least 10% from its previous peak. Concerns about a potential slowdown in data center construction helped drive the selloff, alongside questions about whether restrictions could tighten and AI investment could weaken.
Chipmakers lead early gains
Technology shares began to recover Friday, helping lift the Nasdaq. Nvidia, viewed as a bellwether for the AI sector, rose 6.6% in early trading. Micron Technology, a semiconductor manufacturer, gained 9.8%.
Key points
- The Nasdaq rose 1.8% in early trading Friday after losing more than 1,400 points Thursday.
- Thursday’s losses pushed the Nasdaq into a correction, a decline of at least 10% from its previous peak.
- The S&P 500 gained nearly 1%, while the Dow fell 0.2%.
- Nvidia rose 6.6% and Micron Technology gained 9.8% in early trading.