The Nasdaq Composite rebounded on Friday after its worst drop in over a year, but the index remained on track for a fourth straight weekly decline. Investors are closely watching the AI sector for signs of what lies ahead. Semiconductor stocks led the recovery, with the sector up 4.4%, and major players like Nvidia, Advanced Micro Devices, and Sandisk seeing gains.
Despite the recent volatility, investors remain optimistic about the AI-driven bull market. Keith Lerner, chief investment officer at Truist Advisory Services, emphasized that AI remains the dominant theme. At 2:10 p.m. ET, the Dow Jones Industrial Average was down 20 points at 51,502, the S&P 500 had risen 58 points to 7,411, and the Nasdaq had climbed 365 points to 24,682.
Analysts view the recent selloff as a potential long-term buying opportunity. Adam Turnquist of LPL Financial noted that AI stocks have weathered previous challenges successfully. Meanwhile, strong US nonfarm payrolls data raised expectations of a Federal Reserve rate hike next month, with traders pricing in a 78% chance of a December move.
Other notable movers included Tesla and SpaceX, which recovered from Thursday’s losses, while software firm Atlassian dropped after its earnings report. Airbnb rose after raising its revenue growth forecast. Copper futures, seen as a barometer for AI demand, remained resilient, supporting the bullish outlook despite stock market turbulence.