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The Nasdaq Composite gained 264 points, or 1.1%, Friday as several technology stocks rebounded after Thursday’s broad sell-off. The advance only trimmed its weekly loss: the index finished the week down 3.4%, while the S&P 500 fell 2.7% and the Dow lost 0.9%.
The Nasdaq Composite rose 264 points, or 1.1%, to 24,579 on Friday as technology shares recovered from the prior session’s broad sell-off. The gain did not reverse the week’s losses: the index ended 3.4% lower for the week, while the S&P 500 and Dow Jones Industrial Average also finished below their previous week’s levels.
The Friday rebound was concentrated in some of the technology stocks hit hardest on Thursday. Memory-chip maker Micron Technology gained 5.1%, and Nvidia, a major artificial-intelligence chip supplier, rose 2.8%. The source report described the broader market’s Friday moves as more limited: the S&P 500 added 0.3% to 7,376, while the Dow slipped 0.5% to 51,285.
Thursday’s sharp market decline followed concerns about possible political and regulatory headwinds for the data-center buildout, according to the Kiplinger report. Another pressure on technology shares came from reports that Microsoft planned to use fewer “neocloud” providers—companies supplying high-performance computing infrastructure for AI workloads. Microsoft’s reported plans and their potential sector impact were not independently confirmed in the source material.
Market news also included company-specific moves outside the technology rebound. Airbnb rose 11.7% after reporting third-quarter earnings and revenue above Wall Street expectations, while DraftKings fell 21.3% after missing quarterly forecasts and lowering its full-year outlook. Those moves illustrate how earnings and company guidance—not just broad market direction—shaped individual stocks at the end of the week.
A One-Day Bounce, a Losing Week
Friday’s rise matters as a sign that investors bought some technology shares after Thursday’s drop, but the weekly figures show the rebound was limited. The Nasdaq remained 3.4% lower for the week, and the S&P 500 and Dow also posted weekly declines. A positive session alone does not establish that the sell-off has ended or that investor concerns about AI infrastructure spending have eased.
The competing signals are relevant to investors following the technology sector: chip shares recovered, but reports about Microsoft’s potential use of fewer neocloud providers weighed on the outlook for some AI infrastructure companies. Meanwhile, the stronger-than-expected jobs report could affect expectations for Federal Reserve policy. The market’s next direction may depend on how investors weigh company results, data-center spending prospects, and incoming inflation data.
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Thursday’s Sell-Off and Friday’s Rebound
The market’s Friday close followed a broad decline on Thursday. Kiplinger attributed that sell-off to concern that Democratic leadership in Washington and in states including Texas and Ohio could create obstacles for data-center development. The report did not detail specific proposed measures or establish what their effects would be.
The week also brought fresh labor-market data. The Bureau of Labor Statistics reported that the United States added 165,000 jobs in October, above the 59,000 expected in the report, while unemployment edged down to 4.1% from 4.2%. Kiplinger said the October Consumer Price Index report was due the following Tuesday, giving investors another major economic release to weigh after the jobs figures.
The earnings news showed sharply different reactions. Airbnb reported earnings of $3.16 per share, up 43% year over year, and revenue of $4.9 billion, up 19%. DraftKings missed both revenue and earnings expectations, according to the report, and cut its full-year forecast, citing investment in prediction markets as a factor weighing on profits.
“The job market strengthened in October, with considerably better payrolls growth than expected.”
— Bill Adams, chief U.S. economist at Fifth Third Commercial Bank, as quoted by Kiplinger
Inflation and AI Spending Risks
The Friday advance does not show whether technology stocks will continue to recover. It is also unclear from the source material what specific policy actions prompted the data-center concerns, whether Microsoft will in fact reduce its use of neocloud providers, or how any change would affect individual companies’ revenue. The report did not provide details establishing the scale or timing of those potential effects.
The October jobs report was stronger than expected, but the next inflation reading could change market expectations for Federal Reserve decisions. Kiplinger cited futures pricing that put the chance of a December rate increase at 77%, up from 71% a week earlier; those figures are market-implied probabilities, not a Fed decision, and can change as new data arrives. The source report did not establish what the central bank would do.
CPI and Neocloud Earnings Ahead
Investors were due to receive the October Consumer Price Index report the following Tuesday. Kiplinger said headline inflation was expected to moderate as gasoline prices eased, while likely remaining above the Federal Reserve’s 2% target. The CPI release could shift expectations for the Fed’s December decision, but the direction and size of any market reaction remain unknown.
Attention was also turning to CoreWeave’s earnings in the following week. The company, identified in the report as a prominent neocloud provider, was expected by Wall Street to report a wider per-share loss than a year earlier alongside strong revenue growth. Those were forecasts, not reported results; the earnings release will give investors more information about demand and financial performance in the AI infrastructure market.
Key Questions
How much did the Nasdaq gain on Friday?
The Nasdaq Composite rose 264 points, or 1.1%, to 24,579 at Friday’s close, according to the Kiplinger report.
Did the Nasdaq finish the week higher?
No. Despite Friday’s rebound, the Nasdaq ended the week down 3.4%. The S&P 500 fell 2.7% for the week, and the Dow lost 0.9%.
What helped technology stocks rise Friday?
Several technology stocks that had been hit in Thursday’s sell-off rebounded. Micron rose 5.1% and Nvidia gained 2.8%. The source report linked Thursday’s decline to concerns about data-center development and reports about Microsoft’s potential use of fewer neocloud providers.
What economic report was coming next?
The October Consumer Price Index report was scheduled for the following Tuesday. Its results could affect market expectations for Federal Reserve policy, but the source did not specify how investors or the Fed would respond.
Source: kiplinger.com
