US technology stocks bounced back on Friday from their worst drubbing in more than a year, but the Nasdaq Composite Index still posted its fourth consecutive weekly decline as investors weighed the outlook for artificial intelligence (AI) shares.
The Nasdaq rose 264 points, or 1.1%, to close at 24,579.43 after trading as much as 2% higher during the session. The S&P 500 gained 23 points, or 0.32%, to 7,376.86, while the Dow Jones Industrial Average fell 237 points, or 0.46%, to 51,285.73.
For the week, the Nasdaq fell 3.4%, the S&P 500 dropped 2.7% and the Dow slipped 0.9%. The S&P 500 had its worst week in more than a year, while this week’s selloff took the Nasdaq into correction territory, a fall of 10% from its peak a month ago.
Gains within the technology sector were broadly shared, with the semiconductor index rallying 4.2%. Nvidia rose 2.8%, Advanced Micro Devices added 11% and Sandisk rebounded almost 4%, while Tesla rose 4.2% and SpaceX jumped 8.6%.
Data released on Friday showed US nonfarm payrolls rose more than expected in October and the unemployment rate fell to 4.1%. Traders added to bets that the Federal Reserve could raise interest rates as soon as next month, pricing in a 78% chance of a December hike compared with 70% earlier, according to LSEG data.
Among other movers, software firm Atlassian fell 16% after reporting first-quarter results, while Airbnb climbed 12% after raising its full-year 2026 revenue growth forecast. The S&P 500 energy index dropped 12% for the week, its worst performance since April 2025, as oil prices headed for sharp weekly declines.