Nauman Khan
1 min read
This article first appeared on GuruFocus.
The Nasdaq Composite rebounded Friday, attempting to recover from its steepest one-day decline in 19 months, which pushed the index into correction territory.
The index had fallen 5.52% on Thursday, extending its retreat from the October peak to more than 10%. The decline also left the Nasdaq on track for a fourth consecutive weekly loss as investors reassessed the outlook for technology and artificial intelligence stocks.
Nasdaq-100 rose more than 1% pointing to a potential recovery following the previous session’s selloff.
Concerns about the pace of AI infrastructure investment weighed on sentiment after this week’s midterm election results, particularly in states hosting major data-center projects. Disappointing updates from semiconductor companies Qualcomm and Arm Holdings also added pressure.
Investors were also assessing a stronger-than-expected October U.S. jobs report for its potential implications for Federal Reserve interest-rate policy. Despite Friday’s recovery, the Nasdaq remained on course for another weekly decline.
