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The NASDAQ Composite rebounded on Friday as investors bought up shares of key technology stocks a day after the group led Wall Street to its worst day in more than a month.
The Dow Jones Industrials index collapsed 309.74 points to 47,147.48.
The S&P 500 pulled ahead of breakeven before losing 3.38 points to finish Friday at 6,734.11
The tech-heavy NASDAQ came down from its highs of the morning, but was still positive 30.23 points to 22,900.59, to snap a three-day losing streak.
The tech trade gained some ground after coming under pressure in recent days. Leading artificial intelligence players Nvidia and Oracle both reversed course from their losses seen in the previous session, as did Palantir Technologies and Tesla, both of which saw a drop of more than 6% in the day before.
The NASDAQ dropped more than 2%, as technology giants came away battered. Those losses have now put the tech-heavy NASDAQ on pace to snap its seven-week win streak with a week-to-date fall of 0.6%.
While those losses initially put the NASDAQ on pace to snap its seven-week win streak, Friday’s move higher placed it back in positive territory on the week. The index was last marginally higher week to date. The S&P 500 has risen 0.5% on the week, while the Dow is higher by 0.7%.
Concerns about the artificial intelligence trade have emerged more seriously this week, with the recent wipeout in once-hot cloud stock Oracle further spooking investors about elevated tech valuations, a massive surge in debt financing and soaring AI capex plans. To be sure, Oracle’s growth is uniquely more reliant on its cloud deal with OpenAI and the company has far less cash compared to hyperscalers.
The U.S. government shutdown, which was the longest in history, ended Wednesday evening after stretching on for more than six weeks. That development had been expected to end a period where investors were operating without important economic data.
Prices for the 10-year Treasury slid, raising yields to 4.15% from Thursday’s 4.12%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.25 to $59.94 U.S. a barrel.
Gold prices stumbled $107.20 to $4,087.30 U.S. an ounce.
