US Equities Rebound After Technology-Led Sell-Off

US equities recovered on Friday as technology and semiconductor stocks advanced following the previous session’s sharp decline. The Nasdaq Composite rose 1.71% to 24,730.30, recovering part of its losses after recording its steepest one-day decline in 19 months on Thursday and entering correction territory.

The S&P 500 gained 0.94% to 7,423.05, while the Dow Jones Industrial Average remained broadly unchanged at 51,555 points. Despite Friday’s recovery, the S&P 500 was still on course for its weakest weekly performance since June, while the Nasdaq was facing a fourth consecutive weekly decline.

The rebound followed concerns that a Democrat-led Congress could introduce tougher artificial intelligence regulation, potentially slowing data-center development in key US markets. Those concerns had contributed to the previous session’s broad sell-off in AI-related stocks.

Semiconductor Stocks Lead the Recovery

Semiconductor shares recorded some of the strongest gains after suffering substantial losses during Thursday’s trading session. The broader semiconductor index advanced 4.2%, recovering from a decline of more than 12% in the previous session.

Nvidia gained 3.8%, while AMD, Intel, and Micron Technology rose between 6% and 10%. The recovery also extended to data-center operators IREN and Applied Digital, neocloud providers CoreWeave and Nebius Group, and infrastructure-related companies GE Vernova and Constellation Energy.

Tesla and SpaceX also advanced 5% and 6%, respectively, following sharp declines over the previous two sessions.

However, the recovery was not universal. Microchip Technology fell 12.1% after forecasting third-quarter adjusted gross margin below market estimates, putting the stock on track for its steepest weekly decline since December 2000.

Strong Employment Data Complicates the Interest Rate Outlook

October’s employment report provided another important factor for investors. US nonfarm payrolls increased by 165,000, exceeding the expected 65,000, while the unemployment rate declined to 4.1%.

The stronger labor market figures increased expectations that the Federal Reserve could raise interest rates as soon as December. Market-implied expectations for a December rate increase rose to 78%, compared with 70% earlier.

The possibility of higher borrowing costs created a more complicated backdrop for equities, particularly after the previous session’s volatility. Investors were weighing the strength of the employment market against the potential impact of tighter monetary policy on financial markets.

Individual Stocks Deliver Mixed Results

Outside the semiconductor recovery, corporate developments continued to influence individual shares.

Airbnb climbed 10.4% after raising its full-year 2026 revenue growth forecast, while software company Atlassian declined 15.4% following the release of its first-quarter results.

The broader market remained uneven, with six of the 11 S&P 500 sectors trading higher. Information technology led the gains, while consumer staples and healthcare were among the weaker sectors.

Crude oil prices also remained part of the market outlook. A sharp increase on Thursday had raised concerns about energy-driven inflation and the possibility of higher interest rates from central banks. Brent crude futures were slightly lower on Friday.

What Investors Should Watch Next

The market’s near-term direction will depend partly on whether the technology-led recovery can extend beyond a single trading session. Semiconductor performance, developments in AI regulation, and the outlook for data-center investment remain important factors for technology valuations.

At the same time, stronger employment figures have increased attention on the Federal Reserve’s December policy decision. Investors will need to assess whether resilient labor demand changes expectations for interest rates while equity markets continue to respond to elevated volatility.