Stocks rebound after tech selloff that pushed Nasdaq into correction
The S&P 500 and Nasdaq edged up in early trading after a Thursday rout driven by concerns about a potential slowdown in data center construction.
After a sharp decline in stocks the previous day, U.S. financial markets showed signs of recovery on Friday, with major indices bouncing back. The S&P 500 increased by 72 points, or nearly 1%, while the tech-heavy Nasdaq Composite surged 437 points, or 1.8%. The Dow Jones Industrial Average, however, dipped by 129 points, or 0.2%.
The market recovered immediately following the midterm elections earlier in the week, but it quickly reversed course on Thursday. Investors were concerned that a Democratic sweep could lead to stricter regulations on data center construction and reduced spending on artificial intelligence. As a result, tech stocks initially struggled, and the Nasdaq fell over 1,400 points, entering a correction - a decline of at least 10% from its previous peak.
However, tech stocks began to recover on Friday, helping to lift the Nasdaq higher. Chipmaker Nvidia, a key indicator for the AI sector, saw a 6.6% gain in early trading, while semiconductor company Micron Technology rose 9.8%.
Written by urgent.news from CBS News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
