Nasdaq rebounds but heads for fourth straight weekly decline

what happened

According to Reuters, technology shares recovered part of a recent slump that was their worst in more than a year. The Nasdaq Composite was still on track for a fourth consecutive weekly decline. The semiconductor index gained 4.4%, with Nvidia, AMD and Sandisk leading the rebound.

Investors still back the AI infrastructure buildout, which has pushed US stock indexes to dozens of record closes this year. Truist Advisory's Keith Lerner said: “We still think AI is the dominant theme in this bull market.” At 2:10 p.m. ET, the Dow Jones was slightly lower, the S&P 500 was up 0.7% and the Nasdaq gained 1.5%.

The backdrop was strong labor data. US nonfarm payrolls rose more than expected in October and unemployment fell to 4.1%. Traders raised the chance of a Fed rate hike in December to 78% from 70%.

why it matters

Solid hiring strengthens expectations for tighter monetary policy, which weighs on expensive tech assets. LPL Financial's Adam Turnquist noted that copper remains above its 200-day moving average, a sign he reads as ongoing demand from data centers. Oil fell, and the S&P 500 energy index was heading for a double-digit weekly drop.

market impact

US stocks: tech rebound supports indexes, but higher Fed hike bets weigh on growth valuations

• ↔Nasdaq Composite mixed — tech rebound supports prices while higher Fed hike odds weigh on valuations

instruments