U.S. chip stocks rebounded in premarket trading Friday after an AI-driven selloff on Thursday that followed the Democrats' midterm election victory. Nasdaq 100 futures rose 1.3%, while Treasury yields jumped after a stronger-than-expected October jobs report.
U.S. chip stocks rebounded in premarket trading Friday, recovering some ground after a sweeping AI-driven selloff on Thursday. The selloff followed the Democrats' midterm election victory earlier this week.
Nasdaq 100 futures rise after worst day since April 2025
The iShares Semiconductor ETF jumped more than 5% before the open by 08:51 ET. Nasdaq 100 futures rose 1.3%, after the index suffered its worst day since April 2025 on Thursday.
Among chipmakers hit hard the previous session, Lam Research surged about 13% in the premarket trade, Micron jumped 8% and Marvell rose around 10%. AMD and Applied Materials surged over 8% each, while Broadcom, Intel and U.S.-listed shares of SK Hynix added between 5% and 6%.
Cloud-computing stocks also rallied. CoreWeave jumped 9.4% and Oracle added 4.4%, while Astera Labs gained about 8%.
Investors weigh data center opposition
Investors have been dumping AI stocks on concerns that Democratic policymakers could block data center projects across the U.S. amid growing voter opposition to their construction. Thursday was the second straight day of selling in AI shares and the fifth drop of more than 500 points in the Nasdaq Composite since mid-October.
The rebound followed another rough session in Asia. South Korea's Kospi closed more than 6% lower for its worst day since 2025, while Japan's Nikkei 225 neared correction territory.
Jobs report beats forecasts
The U.S. economy added 165,000 jobs in October, well above economists' forecast of 65,000. Stock futures were little affected by the data. The 10-year yield edged higher to 4.87%.
The unemployment rate ticked down to 4.1%, while economists had expected it to hold at September's 4.2%.
Source: Investing.com
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