Wall Street stocks in relief rally after heavy AI-related selloff
SPY•The S&P 500 rose 0.71% and the Nasdaq gained 1.4% on Friday after a selloff tied to concerns about tighter AI regulation, while the Dow slipped 0.08%. U.S. payrolls increased by 165,000, above forecasts, and the 10-year Treasury yield rose to 4.85%.
1. U.S. stocks rebound
The S&P 500 and Nasdaq rose on Friday, led by technology, communication services and consumer discretionary shares, while the Dow edged lower. The S&P 500 gained 0.71%, the Nasdaq Composite rose 1.4% and the Dow fell 0.08%; all three were on track for weekly losses after the prior session’s selloff.
2. Chip stocks recover
The Philadelphia Semiconductor Index climbed 4.2% after its biggest one-day drop since April 2025. Nvidia rose 3%, while AMD, Intel and Micron gained between 5.5% and 10%. Investors have been concerned that Democratic election victories could bring tighter U.S. AI-industry regulation, alongside questions about the costs and returns of data center investment.
3. Global markets and data
The rebound contrasted with losses abroad: Europe’s STOXX 600 fell 1%, while Japan’s Nikkei and South Korea’s KOSPI each dropped about 6%. U.S. nonfarm payrolls rose by a stronger-than-expected 165,000, and annual wage growth was 3.1%. The 10-year Treasury yield ticked up to 4.85%; oil remained on course for its largest weekly drop since 2020.
