The Nasdaq rose 1.5% and the S&P 500 gained 0.7% on Friday as technology and semiconductor shares rebounded, but the Nasdaq remained on track for a fourth straight weekly decline. October payrolls exceeded expectations and unemployment fell to 4.1%, prompting traders to increase bets on a possible December Fed rate hike.
Technology stocks recovered on Friday after their sharpest decline in more than a year. The semiconductor index rose 4.4%, while Nvidia, Advanced Micro Devices and Sandisk rebounded. At 2:10 p.m. ET, the Nasdaq was up 1.5% at 24,682, the S&P 500 gained 0.7% to 7,411 and the Dow was down slightly at 51,502.
Despite Friday's gains, the Nasdaq was on track for its fourth consecutive weekly decline, after falling 3% this week and entering correction territory following a 10% drop from its peak a month earlier. The S&P 500 was on pace for its worst week since June. Investors continued to assess the outlook for the AI trade; one strategist described the week's selling as a knee-jerk reaction.
U.S. nonfarm payrolls rose more than expected in October and unemployment fell to 4.1%. Traders increased the implied probability of a December Federal Reserve rate move to 78%, from 70% earlier. Atlassian shares fell after its first-quarter results, while Airbnb rose after raising its full-year 2026 revenue-growth forecast.
