US stocks finished mixed on Friday as investors returned to semiconductor shares following a sharp sell-off that pushed the Nasdaq Composite into correction territory.
The Nasdaq gained 1.09% to close at 24,579.42, while the S&P 500 advanced 0.31% to 7,376.86. The Dow Jones Industrial Average fell 237.33 points, or 0.46%, to 51,285.73.
The recovery followed Thursday’s steep losses, when the Nasdaq plunged 5.5%, the S&P 500 dropped 4.4% and the Dow shed more than 1,800 points, marking the major benchmarks’ worst session since April 2025.
Technology stocks led Friday’s rebound, with the Philadelphia Semiconductor Index jumping 4.2%. Micron Technology gained 5% after falling 17% the previous session, while Nvidia climbed nearly 3% following a 9% decline. Tesla, Meta Platforms and Alphabet also advanced.
The sell-off was driven by concerns that Democratic victories in the US midterm elections could lead to tighter restrictions on artificial intelligence infrastructure and data centre construction. The prospect of increased regulation has raised uncertainty about the outlook for major technology companies and their substantial capital expenditure commitments.
Investor sentiment was also affected by reports that Microsoft plans to reduce the number of its neocloud partners, potentially reshaping its AI infrastructure arrangements.
Meanwhile, US employment data exceeded expectations, with nonfarm payrolls increasing by 165,000 in October, compared with forecasts of 59,000. The unemployment rate fell to 4.1% from 4.2%.
Despite Friday’s recovery, all three major benchmarks recorded weekly losses. The Nasdaq declined 3.4%, the S&P 500 fell 2.7% and the Dow slipped 0.9%.
Australian Market Outlook
Australian shares are set to open higher on Monday, with S&P/ASX 200 futures indicating a gain of 0.2%.
The positive lead follows a modest recovery on Wall Street, although concerns about potential restrictions on US artificial intelligence infrastructure and data centre development could continue to influence global technology stocks.
Australian blue-chip companies may attract investor interest as markets reassess their exposure to US technology stocks following last week’s sharp declines.
Investors will also assess the implications of stronger-than-expected US employment figures for Federal Reserve monetary policy, with resilient labour market conditions potentially reducing the urgency for interest rate cuts.
The outlook for global equities remains sensitive to developments in US technology regulation, the pace of AI infrastructure investment and broader economic conditions following the recent market volatility.
