Nasdaq rises 1.23% after AI stock sell-off — BBC News

In the United States, the technology-heavy Nasdaq Composite rose 1.23% at the start of trading, partially recovering from a 5.5% decline the previous day. The market began to recover after a broad sell-off in shares of companies linked to artificial intelligence and technology, which on Thursday wiped trillions of dollars off their combined market value, BBC News reports.

Recovery in technology stocks

The sell-off, which began in the United States, spread to Asian and European markets on Friday. Investors sold technology shares, in part over concerns that a convincing Democratic victory in the midterm elections could slow the development of artificial intelligence.

Nvidia shares, which fell by more than 9% on Thursday and cut the company’s market value by hundreds of billions of dollars, rose by more than 6% on Friday. SpaceX shares gained more than 7%, while Tesla added nearly 3%.

The S&P 500 index also opened slightly higher. At the same time, the Dow Jones Industrial Average edged lower at the start of trading.

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Employment data

Fresh labour market data became an additional factor for US traders. According to the data, US employers created 165,000 jobs — more than twice as many as analysts expected. The unemployment rate fell to 4.1% from 4.2% in September.

According to the US Bureau of Labor Statistics, the unemployment rate has remained within a narrow range of 4.1% to 4.3% since March. The largest number of new jobs was created in professional and business services — 70,000. The healthcare sector added 42,000 jobs, while employment also grew in transportation, warehousing and manufacturing.

Premier Miton Chief Investment Officer Neil Birrell said that strong employment figures may indicate fewer risks to the real US economy than markets fear.