Nasdaq Closes Higher After Weekly Sell-Off

Nasdaq Rebounds After Friday’s Tech-Heavy Selloff, Tech and Chip Stocks Drive Recovery

The Nasdaq Composite (^IXIC) closed higher on Monday, reversing a steep Friday selloff that saw the index drop 2% amid geopolitical tensions and inflation fears. The rebound followed a week of volatility, with the tech-heavy benchmark nearing correction territory after a 5% plunge earlier in the month.

The market’s pivot came as investors reassessed risks tied to the Iran conflict and rising bond yields, while chipmakers and AI-focused firms staged a partial recovery. The S&P 500 and Dow Jones Industrial Average also posted gains, though the broader market remained under pressure from persistently high oil prices and fears of prolonged Fed rate hikes.

How the Tech Sector Rebounded Amid Broader Market Volatility

The Nasdaq’s recovery was fueled by a rebound in semiconductor stocks, with major chipmakers like AMD and NVIDIA seeing renewed investor interest. Analysts at Yahoo Finance noted that “the sector’s resilience reflected growing confidence in long-term AI adoption and 5G infrastructure investments.”

The rebound also coincided with a slowdown in the 10-year Treasury yield, which eased to 4.6% from a 15-year high of 4.8% earlier in the week. This shift relieved some pressure on growth stocks, which had been hit hard by rising discount rates.

“The market is re-pricing risk,” said James Chen, CFA, a portfolio manager at Evergreen Capital. “Investors are betting that the Fed will pivot sooner than expected, and that tech earnings will outperform in the second half of the year.”

The Role of AI Stocks in the Market’s Resilience

AI-focused equities, which had fallen sharply during the week’s selloff, regained traction as earnings from major cloud providers signaled stronger-than-expected