Nasdaq opens higher as chip stocks attempt to recover from brutal losses

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1. 16m ago

   Nasdaq opens higher as chip stocks stabilize after correction-confirming selloff

   The Nasdaq Composite opened higher Friday as semiconductor shares pared steep losses from Thursday's session that pushed the index into correction territory. The rebound follows a broad AI-driven rout triggered by concerns that Democratic midterm gains could bring stricter AI regulation. Futures had signaled a relief rally after the index logged its steepest one-day decline in 19 months. The Dow Jones Industrial Average fell 237.33 points, or 0.46%, to 51,285.73, while the S&P 500 rose 0.31%. U.S. job growth of 165,000 added to mixed sentiment.

   Why it matters

   Thursday's plunge erased roughly $2.5 trillion in global market value as investors priced in potential regulatory headwinds for AI leaders. The Nasdaq's correction confirmation, a 10% drop from recent highs, marked a technical milestone that often precedes either stabilization or further selling. Friday's early gains suggest dip-buying interest, but the Dow's decline shows rotation out of mega-cap tech. The jobs report adds complexity to the Federal Reserve's rate path, which remains a parallel driver for rate-sensitive growth stocks.

   What is confirmed

   • The Nasdaq Composite opened higher on Friday after entering correction territory on Thursday.
   • Thursday's session marked the Nasdaq's steepest one-day decline in 19 months.
   • The Dow Jones Industrial Average fell 237.33 points, or 0.46%, to 51,285.73 on Friday.
   • The S&P 500 rose 0.31% on Friday.
   • U.S. employers added 165,000 jobs in the latest payrolls report.

   Still unconfirmed

   • The selloff was driven by fears that a Democratic-led Congress could result in tougher AI regulation.
   • Global stocks plunged amid AI slowdown fears after Democrats' midterm triumph.
   • Asian benchmarks declined after AI worries sent Wall Street tumbling.
   • European and UK stocks were set to join the global AI-driven selloff.
   • SpaceX shares plunged alongside tech and AI stocks.

   What to watch next

   • Whether Friday's rebound holds through the close or fades into further selling
   • Any legislative signals on AI regulation from the new Congress composition
   • Next week's CPI and PPI inflation data for Fed rate expectations
   Sources used for this update (17)

   1. www.foxbusiness.com — Great Business Leaders in America & Around the World | Fox Business
   2. BBC — Shares in Musk's SpaceX plunge as tech and AI stocks fall
   3. The Economist — Markets realise they hate America’s blue wave
   4. AP News — Asian benchmarks decline after AI worries send Wall Street tumbling
   5. The Guardian — Global stocks plunge amid AI slowdown fears after Democrats’ midterm triumph
   6. Reuters — Nasdaq futures rise after steep AI selloff as chip stocks stabilize
   7. Bloomberg.com — FTSE 100 Live: European and UK Stocks Set to Join Global AI-Driven Selloff
   8. Yahoo Finance — Stock market today: Nasdaq futures rebound after brutal sell-off, Dow and S&P 500 wobble as US adds 165K jobs
   9. Fox Business — Nasdaq opens higher as chip stocks attempt to recover from brutal losses
   10. The New York Times — After a $2.5 Trillion Wipeout, Tech Investors Brace for More Pain
   11. The Telegraph — FTSE 100 slumps in AI rout – latest updates
   12. finance.yahoo.com — Nasdaq opens higher as chips pare losses, rate-hike fears ...
   confidence 88%