Traders work on the floor of the New York Stock Exchange (NYSE) on November 14, 2025 in New York.
Charlie Tribalew | AFP | Getty Images
of Nasdaq Composite It rebounded on Friday as investors bought up shares in major technology stocks, a day after the group led Wall Street to its worst day in more than a month.
The tech-heavy Nasdaq rose 0.13% to end at 22,900.59, ending a three-day losing streak. of S&P500 It ended almost flat at 6,734.11, down just 0.05%. Dow Jones Industrial Average He lost 309.74 points (0.65%) and settled at 47,147.48. The three indexes rebounded sharply from the day’s lows, when the Nasdaq and S&P 500 fell 1.9% and about 1.4%, respectively. The Dow Jones Industrial Average fell about 600 points (about 1.3%).
Tech trade has been under pressure in recent days but has regained some momentum. Key players in artificial intelligence Nvidia and oracle Both reversed course from losses seen in the previous session. Palantir Technologies and teslaboth of which had fallen more than 6% the previous day. of Technology Select Sector SPDR Fund (XLK) It ended Friday up 0.5%, offsetting some of the 2% decline from Thursday.
Major US indexes on Thursday posted their worst one-day performance since October 10th. The 30-stock Dow Jones Industrial Average fell about 800 points, regaining gains seen when it rose above the 48,000 level in Wednesday trading. The Nasdaq plunged more than 2% as tech giants were battered.
“We’re going back and forth between risk-on (and risk-off) type trades,” said Brian Mulberry, client portfolio manager at Zacks Investment Management. “I think just knowing that most people have increased their focus because of the solid performance of these technology companies, people are probably looking to reposition themselves as we move towards the end of the year, into 2026.”
“There will be some floor to this volatility. We expect to see more of this 1% to 2% up and down, probably until near the end of the year, as people reposition their portfolios and de-risk,” he said.
Following this week’s wild swings, the Nasdaq ended the period down 0.5%. However, the S&P 500 and Dow both maintained their gains, rising 0.1% and 0.3%, respectively.
Concerns about the AI trade deepened this week, with the recent wipeout of once-popular cloud stock Oracle, further spooking investors over rising valuations for tech companies, a huge jump in debt financing and soaring AI capital spending plans. Indeed, Oracle’s growth is more dependent on its cloud contract with OpenAI, and the company has far less cash compared to hyperscalers.
“AI is really testing the limits of Wall Street spreadsheets right now,” David Krakauer, vice president of portfolio management at Mercer Advisors, told CNBC, adding that the fact that investors “are pricing in a significant portion of future growth that we can’t really measure yet” is only adding to the “volatile environment.” “Valuations are so inflated that any movement in earnings or interest rate expectations will have an even greater impact.”
Existing pressures on the market were exacerbated this week by growing uncertainty over the Federal Reserve’s future interest rate decisions. Traders are currently pricing in a less than 50% chance that the central bank will cut the benchmark overnight borrowing rate by half a percentage point at its December meeting, lower than the 62.9% chance markets priced in earlier this week and the 95.5% chance a month ago, according to the CME FedWatch tool.
In addition to risk-taking on Wall Street, investors are looking forward to further interest rate cuts in December to support economic recovery. But some Fed members are increasingly concerned that inflation is too sticky to justify further rate cuts this year.
The longest U.S. government shutdown in history lasted more than six weeks, but ended Wednesday night. The development was expected to end a period in which investors operated without regard to key economic indicators. Rather, new questions arose. White House press secretary Caroline Levitt suggested that some economic data scheduled to be released during the impasse may not be made public.
