Nasdaq rebounds as chip stocks recover from steep losses
QQQ•The Nasdaq rose 1.73% and semiconductor stocks gained 4.6% as chips recovered from the previous session’s losses. Stronger-than-expected October payrolls, up 165,000, lifted bets on a possible December Federal Reserve rate hike to 78%.
1. Chip stocks rebound
The Nasdaq Composite rose 1.73% on Friday as chip stocks recovered from heavy losses in the previous session, when concerns about possible tighter AI regulation followed Democrats’ midterm election gains. Nvidia added 5.6%, while AMD, Intel and Micron Technology rose between 3% and 10.5%; the semiconductor index gained 4.6% after falling more than 12% on Thursday.
2. Jobs and rate concerns
U.S. nonfarm payrolls increased by 165,000 in October, above the 65,000 estimate, and the unemployment rate fell to 4.1%. Traders raised the implied chance of a Federal Reserve rate hike in December to 78%, from 70% earlier. The Dow was flat and the S&P 500 gained 1%.
3. Other market moves
Data-center and AI-related stocks recovered from the prior session’s losses. Airbnb rose 9.4% after raising its full-year 2026 revenue growth forecast, while Atlassian fell 14.7% after reporting first-quarter results. The S&P 500 was on pace for its worst week since March 2025.
