Ben Pouladian, founder of BEP Research, analyzes the sell-off in tech stocks and concerns over artificial intelligence infrastructure under the ‘Making Money’ theme.
The Nasdaq Composite climbed Friday after a selloff hit AI stocks and sent the stock market into correction territory during the previous trading session.
The tech-heavy Nasdaq rose 1.09%, while the Dow Jones Industrial Average fell 237.33 points, or 0.46%, to 51,285.73. The S&P 500 was up 0.31%.
Gains in the technology sector were broadly shared, with the semiconductor index rising 4.2%. Nvidia rose 2.8%, Advanced Micro Devices rose 11%, and Sandisk rallied nearly 4%. Stocks in the sector opened strong and held on to much of their gains, with the Nasdaq finishing 1.1% higher after rising 2%.
Technology and chip stocks were among the hardest hit Thursday as investors weighed what Democrats’ blowout midterm election victories could mean for AI regulation and data center development.
Mega-cap and growth stocks were mixed on Friday. (Brendan McDermid/Reuters)
The massive sell-off occurred just a day after stocks rebounded following the midterm elections.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| NVDA | NVIDIA CORP. | 186.64 | +5.04 | +2.78% |
| AMD | ADVANCED MICRODEVICES INC. | 449.04 | +44.64 | +11.04% |
| INTC | INTEL CORP. | 56.28 | +4.03 | +7.71% |
| UM | MICRON TECHNOLOGY INC. | 690.00 | +33.61 | +5.12% |
STOCKS DIVE AS DEM’S MID-TERM SWEEP FEEDS AI REGULATORY CONCERNS
“The obvious catalyst for this sharp decline is that markets are pricing in the medium-term results, having yesterday seen markets rise across the board as the political risk premium unwound,” said Jakub Rochlitz, eToro market analyst.
Tesla rose 4.2% and SpaceX jumped 8.6% among tech stocks rebounding from Thursday’s plunge. In other stock moves, software company Atlassian fell 16% after reporting its first quarter results. Airbnb soared 12% after the vacation rental platform raised its full-year 2026 revenue growth forecast.
A trader works on the trading floor of the New York Stock Exchange in New York. (Reuters)
WHAT’S FEEDING WALL STREET’S GROWING CONCERNS ABOUT AI?
U.S. jobs data released Friday showed the economy added 165,000 jobs in October, beating economists’ estimate of a gain of 65,000. The unemployment rate fell to 4.1%.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| Me: DJI | DOW JONES AVERAGES | 51285.73 | -237.33 | -0.46% |
| SP500 | S&P500 | 7376.86 | +23.13 | +0.31% |
| I:COMP | NASDAQ COMPOSITE INDEX | 24579.424792 | +264.43 | +1.09% |
WHAT THE SALE OF WALL STREET TECH STOCKS MEANS FOR YOUR 401(K)
“The encouraging news is that more industries are hiring again and more people are looking for work as they see opportunities increasing,” said Heather Long, chief economist at Navy Federal Credit Union. “The Achilles heel is that wages are still well below inflation, but wage growth was stronger than expected in October.”
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Sophia Compton of FOX Business and Reuters contributed to this report.
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