Nasdaq attempts to recover from worst rout in 19 months as AI stocks see some buying: Live updates

U.S. stocks steadied on Friday after a broad-based equity market rout caused by concerns over a Democratic midterms victory and its potential impact on artificial intelligence. Nasdaq 100 futures climbed by 324 points, or 1.2%, while S&P 500 futures rose by 19 points, or 0.3%. Dow futures, however, slipped by 0.9%. Chipmakers experienced a rebound prior to the opening bell, with Nvidia increasing by more than 4%, Advanced Micro Devices by 6%, and Micron by 7%.

The U.S. financial markets had tumbled on Thursday due to traders' fears of greater Democratic AI regulation, resulting in an estimated $2.5 trillion loss from the Nasdaq Composite, a drop not seen since the COVID-19 pandemic's peak in March 2020. The decline was particularly severe for chipmakers, with the Philadelphia Semiconductor Index falling 12.25%.

AI darlings like Nvidia, AMD, Microsoft, Meta Platforms, Amazon, and Alphabet saw their stocks deteriorate, while sectors that provided shelter from the AI wipeout were also on the rise. Despite the post-election jitters and concerns over Anthropic's upcoming public listing, analysts from Yardeni Research and Citi believed that the selloff presented an opportunity, albeit with potential consequences for data center construction and the AI industry's future.

The Federal Reserve's upcoming labor data, expected to show a rise in jobs growth, could influence interest rate hikes, which may lead to more pain for Wall Street.