Shares in artificial intelligence and technology companies began recovering after a major sell-off erased trillions of dollars in stock-market value. The tech-heavy Nasdaq opened higher on Friday, following a market crash that began in the United States and spread to Asian and European markets.
Technology stocks rebound after steep losses
Investors had sold technology stocks amid concerns that Democratic victories in the midterm elections could slow the development of artificial intelligence. Companies closely linked to AI development, particularly chip and semiconductor manufacturers, were among the hardest hit on Thursday.
However, the latest US jobs report offered a mixed signal for markets on Friday morning. The economy added an unexpectedly strong 165,000 jobs in September.
The Nasdaq Composite Index rose 1.23% on Friday, continuing its gains in early trading and recovering some of its 5.5% decline. The S&P 500, which includes many of the largest publicly traded companies in the United States, also moved slightly higher. The Dow Jones Industrial Average was flat after opening slightly lower.
Nvidia, Tesla and chipmakers recover
Nvidia’s stock price fell more than 9% on Thursday, wiping hundreds of billions of dollars from the company’s market capitalization. The shares opened more than 6% higher on Friday.
SpaceX and Tesla shares also declined on Thursday before posting mixed gains. SpaceX rose more than 7%, while Tesla gained nearly 3%.
Chipmakers AMD and Micron each fell more than 17% on Thursday. AMD stock was up about 12% on Friday, while Micron gained more than 8%.
Source: www.bbc.co.uk