Gains within technology were broadly shared, with the semiconductor index rallying and Nvidia, Advanced Micro Devices and Sandisk rebounding.
The broad revival underscores investor faith in the AI buildout that has driven US stock indexes to dozens of record closes this year, despite a shakeout that began with a US long-term Treasury yield spike in August and the stock volatility of the past month.
“We still think AI is the dominant theme in this bull market,” said Keith Lerner, chief investment officer at Trust Advisory Services in Atlanta. “We are still giving technology the benefit of the doubt.”
The S&P 500 climbed 24.70 points, or 0.34 percent to end the session at 7,378.43. The Nasdaq gained 264.42 points, or 1.09 percent, to 24,579.42, while the Dow Jones Industrial Average declined 237.33 points, or 0.46 percent, to 51,285.73.
Lerner said he views the selloff this week, which has taken the Nasdaq into correction territory denoting a 10 percent decline from its peak a month ago, as likely offering a longer-term buying opportunity for many investors.
“AI has gone on trial several times in this cycle and come away with an innocent verdict,” said Adam Turnquist, chief cross-asset strategist for LPL Financial in Charlotte, North Carolina. Referring to the US midterm election results that spurred heavy selling in AI stocks, he said, “This week we saw a little bit of a knee-jerk reaction.”
US nonfarm payrolls increased more than expected in October and the unemployment rate fell to 4.1 percent, suggesting the labour market remained resilient. Traders added to bets that the Federal Reserve could hike rates as soon as next month, with a 78 percent chance of a December move compared with a 70 percent chance seen earlier, according to LSEG.
“Those are strong numbers,” said Joe Saluzzi, co-head of equity trading at Themis Trading in Chatham, New Jersey. But he asked, “Will the Fed want to raise interest rates in the face of a market which is teetering?”
Tesla and SpaceX were among technology shares bouncing back from Thursday’s plunge. Among other stock movers, software firm Atlassian dropped after reporting first-quarter results. Airbnb climbed after the vacation rental platform raised its full-year 2026 revenue growth forecast.
Oil prices were slightly lower, adding to bullish sentiment for riskier assets, and were on track for sharp weekly declines. The S&P 500 energy index was on track for a double-digit weekly percentage drop. (Reuters)