AI stocks rebound after trillions wiped from market values

Shares in artificial intelligence and technology firms began to recover on Friday after a broad sell-off wiped trillions of dollars from stock values on Thursday. The decline began in the United States before spreading to Asian and European markets.

The Nasdaq Composite opened up 1.23% and continued to rise in early trading, recovering some of its 5.5% fall on Thursday. The S&P 500 opened slightly higher, while the Dow Jones Industrial Average opened slightly lower.

Nvidia, whose shares fell more than 9% on Thursday, started Friday trading up more than 6%. SpaceX and Tesla, which also suffered losses, rose more than 7% and nearly 3%, respectively.

The sell-off followed a sweeping Democratic victory in the midterm elections. Some Democrats had campaigned for new rules for artificial intelligence and data centres, and the party won control of both houses of Congress. Investors had also expressed concern about whether the large sums being spent on AI would pay off. US President Donald Trump reiterated his support for what he calls “super intelligence” on Friday.

Investors were also weighing US employment figures. Employers added 165,000 jobs in October, more than analysts had expected. The unemployment rate edged down to 4.1% from 4.2% in September. The Bureau of Labor Statistics said it had stayed between 4.1% and 4.3% since March. Professional and business services added 70,000 jobs, while healthcare added 42,000.

Neil Birrell, chief investment officer at Premier Miton, said the strong jobs figures could mean the risks worrying markets were less of a threat to the wider economy than feared.