NEW YORK, November 7, 2026 — Nasdaq futures recovered on Friday, rising 1.8% after the index suffered its worst day since April 2025 on Thursday. The rebound was led by a surge in semiconductor stocks, with Lam Research, AMD, and Micron posting significant gains.
Chip Stock Surge
The iShares Semiconductor ETF jumped 4.9% in early U.S. trading, with Lam Research surging over 10%, AMD soaring 11.2%, and Micron rising about 8%. Other chipmakers, including Applied Materials and Broadcom, also posted gains. The rebound followed a brutal selloff on Thursday, which erased $3 trillion in market value, driven by concerns over data center construction and AI spending.
Jobs Report Impact
The U.S. Labor Department reported that the economy added 165,000 jobs in October, far exceeding the 65,000 expected by economists. The strong jobs report pushed the 10-year Treasury yield to 4.88%, fueling fears of a potential rate hike by the Federal Reserve. Interest-rate futures indicated that investors were increasingly considering another rate increase in December.
Global Spillover
The sell-off in AI stocks had a global impact, with Asian markets falling sharply. South Korea’s Kospi closed more than 6% lower on Thursday, its worst day since 2025. The S&P 500 posted its worst weekly performance since June, despite Friday’s rebound. The Dow Jones Industrial Average fell 0.4% on Friday, while the Nasdaq Composite gained more than 1%.
Outlook
The AI trade remains fragile, with concerns over data center construction and AI spending continuing to weigh on investor sentiment. The planned IPO of Anthropic, a prominent AI lab, may be impacted by the recent market volatility, with some investors reconsidering the company’s valuation. As the market looks ahead to the next scheduled Fed meeting, the calculus suggests that investors are pricing in a potential rate hike, which could further impact the tech sector. What this signals is a heightened sense of caution among investors, who are strategically reevaluating their positions in the face of growing uncertainty. The next key date to watch is the Fed’s meeting next week, where investors will be closely monitoring the central bank’s decision on interest rates.
Sources
- US chip stocks rebound sharply after Thursday's brutal selloff
- US stock market today: Why is the Nasdaq up 1% while the Dow Jones falls? S&P 500 turns green amid tech stock volatility and Fed rate hike fears over strong October jobs report
- 5 Things Investors Need to Know About Friday’s Markets – AOL
- Stock market today: Nasdaq and S&P 500 rebound, Dow slips to cap bruising week for AI stocks
- US Stock Market: Nasdaq rebounds as Dow falls after $3 tn AI selloff
Photo: Gpkp (CC BY-SA 4.0)
