The Nasdaq fell into correction before chip stocks clawed back ground on Friday
The Magnificent Seven stocks lost US$1tn in combined market capitalisation in a single session on Thursday, and four of them, Nvidia, Tesla, Meta Platforms, and Alphabet, recovered ground the following day.
CNBC reported the one-day loss and the Friday gainers.
The Nasdaq Composite closed 1.09 percent higher at 24,579.42 on Friday, according to the outlet, while the S&P 500 rose 0.31 percent to 7,376.86 and the Dow Jones Industrial Average lost 237.33 points, or 0.46 percent, to 51,285.73.
All three averages ended the week lower, the Nasdaq down 3.4 percent, the S&P 500 down 2.7 percent, and the Dow off 0.9 percent.
Thursday’s selling followed Democratic wins in the US midterm elections, including governors’ races in data-centre-heavy states such as Texas, Reuters reported.
The news site put Thursday’s closes at 7,353.73 for the S&P 500, down 4.36 percent, and 24,315.00 for the Nasdaq, down 5.52 percent, leaving the index nearly 12 percent below its October 6 record.
Reuters valued Thursday’s destruction at US$3tn across S&P 500 companies, a figure Wealth Professional reported in its coverage of the session.
CNN estimated roughly US$2.5tn was wiped off Wall Street.
In an email to CNBC, Quilter portfolio manager Stuart Clark tied the declines in the market’s biggest names to concentration risk built up in US equity markets.
Clark said weakness in a relatively small number of technology and semiconductor stocks “quickly translates into sizeable falls for the Nasdaq and S&P 500.”
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Micron Technology rose 5 percent on Friday after a 17 percent fall, and Nvidia gained close to 3 percent after a 9 percent rout, moving back into positive territory for the year, CNBC reported.
Reuters recorded the Philadelphia Semiconductor Index up 4.2 percent, with Advanced Micro Devices, Intel, and Micron Technology between 5.5 percent and 10 percent higher.
Japan’s Nikkei 225 and South Korea’s Kospi each closed 6 percent lower on Friday and Taiwan’s Taiex fell 4.5 percent, according to CNN, while the Stoxx Europe 600 ended 1.1 percent down, the Financial Times reported.
Chris Grisanti, chief market strategist at MAI Capital Management, pointed to a January start date for Texas governor-elect Gina Hinojosa and others as a reason investor fears will likely persist.
In the same comments to CNBC, Grisanti said the headwind grew after the election, though he placed the buildout alongside railroads and the internet as a shift that will not stop.
Total US nonfarm payroll employment rose 165,000 in October 2026 and the unemployment rate changed little at 4.1 percent, the US Bureau of Labor Statistics said in its monthly release.
Economists polled by Dow Jones had expected 59,000, CNBC reported. The yield on the benchmark US 10-year Treasury note ticked up to 4.85 percent, according to Reuters.
Fed funds futures implied a roughly 80 percent chance of a US Federal Reserve rate hike at the December 8 to 9 meeting, Reuters reported, citing LSEG data.
The US consumer price index report for October is due Tuesday, with earnings from CoreWeave, Applied Materials, and Cisco Systems also scheduled.
“We are now seeing something of a buyers’ strike in tech,” said Keith Lerner, chief investment officer at Truist Advisory Services, in a note reported by Reuters.
