Wall Street stages smart recovery on Friday, after a brutal selloff; Nvidia, AMD, Micron, SanDisk surge up to 13%

The US stock markets opened on a mixed note on Friday after a sharp correction on Thursday. Dow Jones opened in the red after a resilient job market boosted rate-hike fears.

On the other hand, the NASDAQ 100 staged a smart recovery of 2% on Friday. However, concerns about a Democratic win could lead to tighter regulation on the AI spending spree persist.

On the other hand, the US economy added 1,65,000 jobs in October, far higher than the 65,000 expected. Resilient job market data gives the central bank enough room to take another rate hike in the coming policy meeting. In the previous policy meeting in October, the Federal Reserve kept interest rates unchanged at 3.75% to 4.00%.

Fed chairman Kevin Warsh said the interest rate trajectory will be decided on the coming macroeconomic data. Besides this, CPI inflation surged to 3.7%, further prompting the Federal Reserve to hike.

After the resilient labor data, CME’s Fedwatch tool showed an 80% probability of a 25 bps rate hike in the coming policy meeting in December, against 66% probability of the same.

Meanwhile, the chip stocks staged a strong bounce back on Friday as investors chose to buy the dip after a sharp fall on Thursday. Chip stocks, which faced immense selling pressure on Thursday, bounced back in double digits on Friday.

Advanced Micro Devices (+13%), SanDisk Corporation (+12.99%), Micron Technology (+10.2%), Marvel Technology (+9.2%), Intel Corporation (+7.1%), and Nvidia Corporation (+6%) were the key gainers.

Along with this, the Philadelphia Semiconductor Index (SOX), which fell 12.2% on Thursday, jumped over 5% on Friday, recouping almost 50% of the previous day’s losses.

Among the mega caps, Apple Inc. (-0.2%) held the top position at $4.99 trillion in market cap. Meanwhile, the AI-hyperscalers like Alphabet (+1.9%), Amazon Inc. (+0.9%), and Meta Platforms (+2%) also gained amid bargain hunting at lower levels. Shares of Space Exploration Technologies also recouped partial losses on Friday, gaining 5.6%.

Meanwhile, Tesla shares were particularly in focus on Thursday after Elon Musk announced that he will be winding down the production of the Cybertruck by mid 2027 to scale up the production of Cybercab. In a post on social media platform X, Elon Musk said, “ Tesla will be winding down production of the Cybertruck at Gigafactory Texas around the middle og next year to make room for increased Cybercab production.”

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