Wall Street stocks in relief rally after heavy AI-related selloff
SPY•The S&P 500 rose 0.61% and the Nasdaq gained 1.1% as technology shares rallied, while the Dow edged down 0.08%. The rebound followed a global selloff, and US payrolls rose by a stronger-than-expected 165,000.
1. US shares rebound
The S&P 500 and Nasdaq rose on Friday, led by technology, communication services and consumer discretionary stocks, while the Dow edged lower. The Philadelphia Semiconductor Index gained 4%; Nvidia rose 4%, and other major chipmakers rose between 2% and 10%. All three major US indexes were on track for weekly losses after the previous session’s selloff.
2. Global losses continue
The rebound contrasted with declines elsewhere: Europe’s STOXX 600 fell 1.36%, while Japan’s Nikkei and South Korea’s KOSPI each lost about 6%. Taiwan’s benchmark fell more than 8% at one point before paring losses. Investors had been concerned that Democratic election victories could lead to tighter US AI-industry regulation, adding to worries about the cost and potential returns of data-center investment.
3. Payrolls beat forecasts
US nonfarm payrolls increased by 165,000, more than expected, while annual wage growth was 3.1%. The 10-year Treasury yield ticked up to 4.86% after falling overnight. Brent crude edged higher but remained on track for its biggest weekly drop since 2020.
