Business2 min
Nasdaq Bounces Back on Friday but Logs Fourth Straight Weekly Loss
Tech stocks recovered from their roughest week in over a year, yet the Nasdaq still closed lower for the month's fourth consecutive week as investors questioned where the AI boom goes next.
Tech stocks came roaring back on Friday, but the Nasdaq Composite still finished the week in the red for the fourth time in a row. The index rose 1.09% to close at 24,579.43, a welcome bounce after the sector suffered its worst selloff in more than a year.
The rebound was broad. Chipmakers led the recovery, with the semiconductor index rallying and heavyweights like Nvidia, Advanced Micro Devices and Sandisk all climbing back. That matters because those companies sit at the center of the artificial intelligence boom, which has pushed US stock indexes to dozens of record highs this year.
The wobble has been hard to ignore. A spike in long-term US Treasury yields in August kicked off a shakeout, and volatility has picked up over the past month. This week's slide pushed the Nasdaq into correction territory, meaning it fell at least 10% from its peak a month ago. The broader S&P 500 managed a 0.32% gain to end at 7,376.92, while the Dow Jones Industrial Average slipped 0.46% to 51,286.21.
Some strategists see the dip as a chance to buy. Keith Lerner, chief investment officer at Truist Advisory Services, still treats AI as the dominant force in this bull market and says technology deserves the benefit of the doubt. Adam Turnquist of LPL Financial made a similar point, arguing that the post-election drop in AI stocks looked more like a knee-jerk reaction than a true change in direction.
The economy is adding a twist. October's jobs report came in stronger than expected, and the unemployment rate fell to 4.1%, a sign the labor market is holding up. That strength has traders betting on higher interest rates. Based on LSEG data, markets now put a 78% chance on a Federal Reserve rate hike in December, up from 70% earlier. Higher rates can make expensive growth stocks less attractive, which is why the Fed's next move is now a key question for tech investors.
For everyday investors, the takeaway is simple: the AI trade is still alive, but it is being tested. Read the full report from Moneycontrol at Moneycontrol.com.
FiledArtificial IntelligenceUnited StatesUnemploymentStock MarketNvidiaAI
