US STOCKS-Nasdaq rebounds but remains on track for fourth straight weekly decline

NVIDIA

Today 19:34

Updates throughout
Indexes: Dow down slightly, S&P 500 up 0.7%, Nasdaq up 1.5%
Semiconductors bounce back from worst day in six years
October jobs report surprises to the upside
By Colin Barr and Shashwat Chauhan
Nov 6 (Reuters) - Technology stocks bounced back on Friday from their worst drubbing in more than a year, but the Nasdaq Composite index was on track for a fourth consecutive weekly decline as investors sifted for clues about what comes next in the AI trade.
Gains within technology were broadly shared, with the semiconductor index .SOX up 4.4% and Nvidia NVDA.O, Advanced Micro Devices AMD.O and Sandisk SNDK.O rebounding. 
The broad revival underscores investor faith in the AI buildout that has driven US stock indexes to dozens of record closes this year, despite a shakeout that began with a US long-term Treasury yield spike in August and the stock volatility of the past month. 
“We still think AI is the dominant theme in this bull market,” said Keith Lerner, chief investment officer at Truist Advisory Services in Atlanta. “We are still giving technology the benefit of the doubt.”
At 2:10 p.m. ET (1910 GMT), the Dow Jones Industrial Average .DJI was off 20 points at 51,502, the S&P 500 .SPX was up 58 points, or 0.7%, at 7,411 and the Nasdaq Composite .IXIC was up 365 points, or 1.5%, at 24,682.
Lerner said he views the selloff this week, which has taken the Nasdaq down 3% and put it in correction territory denoting a 10% decline from its peak a month ago, as likely offering a longer-term buying opportunity for many investors. 
“AI has gone on trial several times in this cycle and come away with an innocent verdict,” said Adam Turnquist, chief cross-asset strategist for LPL Financial in Charlotte, North Carolina. Referring to the election results that spurred heavy selling in AI stocks, he said, “This week we saw a little bit of a knee-jerk reaction.” 
Six of the 11 S&P 500 sectors were trading higher, with information technology .SPLRCT leading gains. Consumer staples .SPLRCS and healthcare .SPXHC were the laggards. The benchmark index was on pace for its worst week since June.
US nonfarm payrolls increased more than expected in October and the unemployment rate fell to 4.1%, suggesting the labor market remained resilient. Traders added to bets that the Federal Reserve could hike rates as soon as next month, with a 78% chance of a December move compared with a 70% chance seen earlier.
"Those are strong numbers,” said Joe Saluzzi, co-head of equity trading at Themis Trading. But  “will the Fed want to raise interest rates in the face of a market which is teetering?"
Tesla TSLA.O and SpaceX SPCX.O were among technology shares bouncing back from Thursday’s plunge. Among other stock movers, software firm Atlassian TEAM.O dropped after reporting first-quarter results. Airbnb ABNB.O climbed after the vacation rental platform raised full-year 2026 revenue growth forecast.
Oil prices were slightly lower, adding to the bullish sentiment for riskier assets, and were on track for sharp weekly declines. The S&P 500 energy index .SPNY was on track for a double-digit weekly percentage drop.
Despite the turbulence, Turnquist said a bullish sign for the AI buildout is the performance of copper, a major ingredient in data center buildouts and other technology. Copper futures remain above their 200-day moving average and their September lows, he said, despite the stock selling.
“If this is real demand destruction on AI, you’d think copper would start to roll over,” Turnquist said. “It’s not a perfect barometer, but I look at it as a reality check.”

(Reporting by Colin Barr in New York, Shashwat Chauhan and Utkarsh Hathi in Bengaluru; Editing by Saumyadeb Chakrabarty, Arun Koyyur, Joyjeet Das, Rod Nickel)
((Shashwat.Chauhan@thomsonreuters.com;))