Nasdaq rebounds but posts fourth straight weekly decline

Technology stocks made a comeback on Friday after their worst decline in over a year, but the Nasdaq Composite Index continued its fourth straight weekly drop as investors awaited further clues about the future of the AI trade. Semiconductor stocks surged 4.2%, with Nvidia up 2.8%, AMD rising 11% and SanDisk rebounding almost 4%.

The Nasdaq ended the session 1.1% higher, after reaching a 2% peak. The broader market saw the S&P 500 climb 0.32% to 7,376.86 points and the Dow Jones Industrial Average fall 0.46% to 51,285.73 points. Keith Lerner, chief investment officer at Truist Advisory Services, believes AI remains a dominant theme in the market, despite volatility.

He views the recent decline as a potential buying opportunity. Adam Turnquist, chief cross-asset strategist for LPL Financial, attributed this week's sell-off to a knee-jerk reaction following the US midterm election results, which led to heavy selling in AI stocks. The S&P 500 sectors were mixed, with tech leading gains and consumer staples and healthcare lagging.

US nonfarm payrolls grew more than expected in October, and the unemployment rate fell to 4.1%, indicating a resilient labor market. Traders have shifted their bets towards a potential Fed rate hike as early as next month, with a 78% chance of a December hike. Tesla and SpaceX were among other tech stocks that rebounded from a Thursday slump.

Software firm Atlassian fell 16% after reporting weak first-quarter results, while Airbnb rose 12% after announcing a higher full-year 2026 revenue growth forecast. Oil prices dipped, supporting riskier assets and hinting at sharp weekly declines. Despite the market fluctuations, Turnquist sees a positive sign in copper, a crucial component of data centers and other technology.

Copper futures are above their 200-day moving average and September lows, suggesting sustained demand for AI-related infrastructure.