Nasdaq rebounds but remains on track for fourth straight weekly decline

On Friday, technology stocks rebounded from their worst decline in over a year, but the Nasdaq Composite index remained on track for a fourth consecutive weekly decline, according to Reuters. Technology stocks showed broad gains, with the semiconductor index up 4.4% and Nvidia, Advanced Micro Devices, and Sandisk rebounding. Despite the revival, the Nasdaq Composite was up 1.5%, or 365 points, at 24,682, down 3% from its peak a month ago.

Keith Lerner, chief investment officer at Truist Advisory Services, believes AI remains the dominant theme in the current bull market and sees the recent sell-off as a potential buying opportunity. Adam Turnquist, chief cross-asset strategist for LPL Financial, views the stock volatility as a knee-jerk reaction following the election results that caused heavy selling in AI stocks.

The S&P 500 was up 0.7%, at 7,411, while the Dow Jones Industrial Average fell by 20 points to 51,502. US nonfarm payrolls increased more than expected in October, with the unemployment rate falling to 4.1%, indicating a resilient labor market. Traders were adding to bets that the Federal Reserve could raise interest rates as soon as next month, with a 78% chance of a December hike compared to a 70% chance earlier.

Despite the turbulence, Turnquist noted that copper, a crucial component in data center buildouts, was performing well and remaining above its 200-day moving average, suggesting real demand for AI.