Tech, chips rally day after sharp selloff
SPY•The Nasdaq and S&P 500 rose more than 1% on Friday, with technology shares up more than 2% and semiconductors more than 5%, a day after a sharp selloff. The Dow was slightly higher, while all three major U.S. indexes remained on track for weekly losses.
1. Technology shares lead gains
The Nasdaq and S&P 500 were each more than 1% higher on Friday, with technology shares leading the gains after stocks sold off sharply the previous day and the Nasdaq confirmed it was in a correction. The S&P 500 technology sector was up more than 2%, while an index of semiconductors gained more than 5%.
2. Election and jobs concerns
Concerns about tougher AI regulation after Tuesday’s U.S. midterm elections had weighed on data center, chipmaker and other AI-related shares. Stronger-than-expected job gains last month also dampened sentiment by boosting expectations for a December interest rate hike. The Dow was barely higher, and all three major U.S. stock indexes remained on track for weekly losses.
