US markets close mixed as tech stocks push back
US technology stocks bounced back on Friday from their worst drubbing in more than a year, but the Nasdaq Composite Index posted a fourth consecutive weekly decline as investors sifted for clues about what comes next in the AI trade. Gains within technology were broadly shared, with the semiconductor index rallying and Nvidia, Advanced Micro Devices and Sandisk rebounding. The broad revival…
US technology stocks rebounded on Friday from their most significant decline in over a year, but the Nasdaq Composite Index experienced its fourth consecutive weekly drop as investors awaited further insights into the AI sector. Across technology, various sectors saw gains with semiconductor indexes surging and major companies like Nvidia, Advanced Micro Devices, and Sandisk recovering.
This widespread resurgence highlights investor confidence in the AI-driven expansion that has propelled US stock indexes to numerous record highs this year, despite a market-wide volatility surge that began in August and the recent stock fluctuations.
Keith Lerner, chief investment officer at Trust Advisory Services, remains optimistic about AI's dominance within the current bull market and continues to support technology investments. The S&P 500 rose by 24.70 points, or 0.34 percent, closing at 7,378.43. Meanwhile, the Nasdaq increased by 264.42 points, or 1.09 percent, reaching 24,579.42, while the Dow Jones Industrial Average fell by 237.33 points, or 0.46 percent, settling at 51,285.73.
Lerner suggests that the recent market decline, which brought the Nasdaq into correction territory, could present a potential buying opportunity for many investors. Adam Turnquist, chief cross-asset strategist for LPL Financial, attributes the recent sell-off to a knee-jerk reaction after the US midterm elections, which led to substantial AI stock sell-offs.
Recent US nonfarm payrolls data released in October surpassed expectations, with unemployment dropping to 4.1 percent, indicating a robust labor market. Traders have increasingly expected the Federal Reserve could raise interest rates as early as next month, with a 78 percent likelihood according to LSEG, up from a 70 percent chance earlier.
These positive indicators have bolstered trading confidence, yet co-head of equity trading at Themis Trading, Joe Saluzzi, questions whether the Federal Reserve will pursue rate hikes with the market showing signs of instability. Companies like Tesla and SpaceX demonstrated strength as technology shares recovered from Thursday's sharp decline.
Atlassian, a software firm, underperformed after releasing first-quarter results. Airbnb, a travel booking platform, rose after announcing a revised full-year 2026 revenue growth forecast. Oil prices experienced a slight decrease, contributing to the favorable outlook for riskier assets, and are on track for significant weekly declines. The S&P 500 energy index is projected to face a double-digit weekly drop.
Written by urgent.news from RTHK News - Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.