What changed
US technology shares rebounded on Friday, 6 November, after a sell-off erased trillions of dollars in market value. The Nasdaq Composite rose about 1.7% around lunchtime, clawing back part of its 5.5% fall the day before.
The swings were sharpest among AI-linked companies:
- Nvidia rose about 4% after briefly gaining more than 6%.
- AMD climbed about 12% after falling more than 17% on Thursday.
- Micron gained more than 8% after a similar Thursday collapse.
- Tesla and SpaceX also recovered part of their losses.
Why it matters
This was not a clean recovery. Asian and European markets continued to fall, with South Korea’s Kospi down 6% and the FTSE 100 off 1.01%. The rebound was concentrated in US technology shares, while investors were still digesting a strong September jobs figure, a Bank of England rate increase and the prospect of another rise.
Politics has also become part of the AI valuation story. Democrats won control of both houses of Congress and key states after campaigning for tighter rules around artificial intelligence and data centres. That raises the possibility of slower expansion for companies whose valuations depend on rapid development and heavy infrastructure spending.
The informed guess is that Friday’s gains show investors testing whether the sell-off went too far, rather than settling the argument over AI’s prospects. If US technology shares hold their recovery next week, confidence may return; if they fall back, Thursday’s rout will look more like a change in direction than a one-day shock.
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