Nasdaq Tech Stocks Gain 1.4% After Trillions Lost in Sell-Off

Shares in artificial intelligence (AI) and technology firms rose after a large sell-off wiped trillions of dollars from stock values. The tech-heavy Nasdaq Composite index rebounded by 1.4%, recovering some losses from a 5.5% drop the previous day. The S&P 500 increased by about 0.7%, while the Dow Jones Industrial Average remained flat. This rebound followed an unexpected addition of 165,000 jobs in the US economy in September, providing mixed signals for the market.

Chip and semiconductor manufacturers faced the biggest declines on Thursday but showed some recovery on Friday. Nvidia's shares fell more than 9% on Thursday and gained over 3% on Friday. AMD and Micron shares dropped more than 17% on Thursday but rose 10% and over 5% respectively on Friday. SpaceX and Tesla also recorded gains, up 8% and nearly 5%. In contrast, Asian and European markets performed worse, with South Korea's Kospi dropping 6% and SK Hynix shares falling more than 10%. European indices and the UK's FTSE 100 declined by around 1%.

The sell-off and subsequent recovery come amid concerns that the Democrat victory in the US midterm elections could slow AI development, as the new Congress may implement new regulations on AI and data centers. The Bank of England also raised interest rates, signaling potential further hikes to control inflation. Market participants await further developments to assess whether the tech sector's rebound is sustainable. The fluctuations highlight the sensitivity of tech stocks to political and economic factors, impacting investor decisions on AI-related equities (e.g. Nasdaq).