Nasdaq rebounds as chip stocks recover from steep losses
SPY•The Nasdaq rose 1.73% and semiconductor stocks gained 4.6% on Friday after steep losses in the previous session. October payrolls exceeded estimates, while traders raised the probability of a December Federal Reserve rate hike to 78%.
1. Chips lead rebound
The Nasdaq rose on Friday as chip stocks recovered from heavy losses in the previous session, when concerns about possible tougher AI regulation followed Democrats’ midterm election victory. Nvidia gained 5.6%, while AMD, Intel and Micron Technology rose between 3% and 10.5%; the semiconductor index climbed 4.6% after falling more than 12% the day before.
2. Jobs and rate bets
U.S. nonfarm payrolls increased by 165,000 in October, above the 65,000 estimate, and unemployment fell to 4.1%. Traders put the chance of a December rate hike at 78%, up from 70% earlier.
3. Indexes and movers
At 10:21 a.m. ET, the Nasdaq was up 1.73%, the S&P 500 gained 1% and the Dow was flat. Airbnb rose 9.4% after raising its full-year 2026 revenue growth forecast, while Atlassian fell 14.7% after reporting first-quarter results.
