New York —The Nasdaq Composite rose 1.6 percent to 24,703.84 by late morning in New York on Friday, as semiconductor stocks recovered part of the steep losses that had pushed the tech-heavy index into a correction a day earlier. The rebound held even as Treasury yields climbed after the October jobs report showed stronger hiring than in recent months.
The index fell 5.5 percent on Thursday to close at 24,315.00, about 12 percent below its Oct. 6 close of 27,599.79. Friday’s gain, as of 11:50 a.m. Eastern time, recovered a little over a quarter of that one-day loss; the index had reached 24,825.55 earlier in the session. The S&P 500 was up 0.9 percent at 7,420.23, the Dow Jones Industrial Average was little changed at 51,558.65, and the Russell 2000 was up 0.7 percent.
Chipmakers lead the recovery
Semiconductor makers, the hardest hit on Thursday, led the advance. A broad semiconductor index rose more than 6 percent after falling more than 12 percent in the previous session, according to Fox Business, which reported that Nvidia gained 6.5 percent and that Advanced Micro Devices, Intel and Micron Technology were up between 7 percent and 13 percent. Fox Business said Thursday had been Nvidia’s worst day since January 2025.
Thursday’s selloff followed concern that Democrats’ gains in the midterm elections would bring tougher regulation of artificial intelligence and data center development, according to Fox Business and the Guardian. The losses extended into Asia overnight, where chip stocks fell sharply and Japan’s Nikkei 225 closed down about 6 percent at 57,434.77.
Some measures suggested selling had become stretched. A Goldman Sachs gauge of investor panic reached an extreme reading, a level its traders said has in the past preceded strong gains over the following months, Bloomberg reported. Valuations of chip stocks had dropped to their lowest in close to seven years, according to MarketWatch, as share prices fell while earnings expectations rose. The Cboe Volatility Index, a measure of expected swings in the S&P 500, fell to 23.81 from 28.18 at Thursday’s close.
Nasdaq Composite fell about 12% from early October before Friday's bounce
Daily closes; Nov 6 as of 11:50 a.m. ET
Source: Nasdaq Composite via market data
Jobs data push yields higher
The rally came despite a rise in bond yields. Nonfarm payrolls rose by 165,000 in October, the Bureau of Labor Statistics said, compared with an average monthly gain of 48,000 over the prior 12 months. Gains for August and September were revised up by a combined 84,000. The unemployment rate was little changed at 4.1 percent, and average hourly earnings rose 0.4 percent from September and 3.1 percent from a year earlier. Fox Business reported that economists had expected a gain of 65,000 jobs.
The 10-year Treasury yield rose about 3 basis points to 4.868 percent by late morning, after touching 4.903 percent, and the 5-year yield rose about 5 basis points to 4.656 percent. The US Dollar Index gained 0.6 percent to 102.19. Bloomberg reported that the data strengthened bets the Federal Reserve will raise interest rates in December.
What to watch
Friday’s gains leave the Nasdaq Composite about 10.5 percent below its Oct. 6 close, so the index remains in correction territory. The pairing of a stock rebound with higher yields will be tested if expectations of a December rate increase firm further, since higher borrowing costs weigh most on richly valued growth shares. The next read on the labor market, the November jobs report, is scheduled for Dec. 4, according to the Bureau of Labor Statistics.
