Nasdaq index rebounds after market sell-off wipes trillions in value

The tech-heavy Nasdaq stock index rebounded on Friday, climbing about 1.7% by lunchtime after a sweeping market sell-off wiped trillions of dollars in value across global indices following an enormous sell-off. The previous day’s rout sent the Nasdaq down 5.5% in its deepest one-drop since April 2025, erasing $2.5 trillion in market value from the Nasdaq 100 index and roughly $3 trillion from the S&P 500.

Technology Shares Climb Following Steep Market Rout

Shares in artificial intelligence and technology firms climbed on Friday following the severe market rout that began in the US on Thursday before spilling over to Asian and European markets. The S&P 500 rose around 0.9% by lunchtime, while the Dow Jones Industrial Average nudged into positive territory. Individual chipmakers and AI-linked companies reversed some of their steep losses from Thursday, during which Nvidia shed hundreds of billions in market value after shares slid more than 9%. On Friday, Nvidia traded up about 4% higher, and Micron shares rose more than 8% after dropping over 17% the previous day. AMD shares also rose about 12% following a more than 17% drop on Thursday. Tesla and SpaceX shares saw mixed gains of nearly 5% and more than 6% respectively, after being hammered in the previous session.

Democratic Victory Sparks Investor Concerns over Artificial Intelligence

The heavy selling on Thursday was driven by investor concerns that the sweeping Democratic victory in the midterm elections would mean slower artificial intelligence development and tighter scrutiny on data center construction. Top Democrats have called for curbing the data center buildout, and analysts noted that local opposition, power grid strains, and water system impacts are expected to face increased pushback. However, US President Donald Trump reiterated his support for super intelligence on Friday, stating that only foolish leadership would say no to the riches it brings. Meanwhile, Asian and European markets fared worse on Friday, with South Korea’s Kospi closing down 6% and the UK’s FTSE 100 declining 1.01% as traders digested a Bank of England interest rate rise.

Employment Figures Show Unexpectedly Strong Job Growth

Adding to a mixed picture for American markets on Friday morning, the latest US employment figures showed an unexpectedly strong 165,000 jobs added to the economy in September, while the unemployment rate moved down to 4.1%. Despite Friday’s recovery, all three major averages were poised for losses on the week following the historic sell-off that left the Nasdaq Composite nearly 12% below its record close on October 6, putting the index firmly in correction territory.