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US technology stocks went from a brutal selloff to a sharp recovery in just two trading sessions, leaving investors wondering whether the worst is over for semiconductor shares. Nvidia, AMD, Intel and Micron Technology were among the biggest movers, with several chipmakers recovering between 5% and 11% on Friday after suffering steep losses a day earlier.
The dramatic swings came amid growing uncertainty over the artificial intelligence (AI) trade, particularly concerns about data centre expansion, regulation and the sustainability of investment in the sector.
While Friday's rebound offered some relief, it was not enough to erase the damage from Thursday's rout. The S&P 500 ended the week 2.7% lower, its biggest weekly decline since April 2025.
On Friday, November 6, 2026, Wall Street staged a mixed and volatile recovery as investors bought beaten-down technology and semiconductor stocks. The rebound halted the multi-day global market rout triggered by concerns surrounding the US midterm election results, although gains remained uneven across indices.
The S&P 500 rose 0.31%, or 23.13 points, to close at 7,376.86, trimming some of its weekly losses. The Dow Jones Industrial Average, however, fell 237.33 points, or 0.46%, to end at 51,285.73, weighed down by weakness in cyclical stocks and healthcare shares.
Meanwhile, on Thursday, November 5, 2026, US markets suffered a massive selloff, wiping out an estimated $2.5 trillion in market value. The rout erased the post-midterm election rally recorded a day earlier and marked the steepest single-day percentage decline for major indices since April 2025.
The Nasdaq Composite plunged 5.52% to close at 24,315, officially entering correction territory after falling more than 10% from its October peak. The S&P 500 tumbled 4.36% to 7,353.73, with all 11 sectors ending in the red. A flight to safety also pushed Treasury yields lower. The Dow Jones Industrial Average shed 1,833.06 points, or 3.44%, to settle at 51,523.06.
Here is what triggered the two-session reversal and what market experts are saying about the outlook for technology stocks.
The selloff gathered pace on Thursday, when technology stocks plunged and the Nasdaq 100 recorded its biggest one-day decline since the Covid-19 pandemic.
Investor anxiety around the AI trade intensified following the US midterm election results, after Democrats swept the elections. Concerns grew that opposition among voters to the expansion of data centres could translate into a regulatory shift, potentially restricting the growth of chipmakers and data centre suppliers.
The worries struck at the heart of the AI investment theme, which has supported valuations and growth expectations across the semiconductor industry.
The impact was particularly severe for heavyweight technology stocks. Nvidia suffered its worst trading session since January 2025, when the emergence of low-cost Chinese AI model DeepSeek had triggered a sharp market selloff.
The broader semiconductor sector also came under pressure, with the Philadelphia Semiconductor Index recording its biggest one-day fall since April 2025.
After Thursday's sharp decline, technology stocks staged a broad recovery on value buying on Friday as investors bought into beaten-down shares.
The Philadelphia Semiconductor Index climbed 4.2%, while Nvidia gained nearly 3%. AMD, Intel and Micron Technology advanced between 5% and 11%. Tesla rose 4%, while SpaceX shares gained nearly 9%, recovering from losses earlier in the week.
The rebound extended beyond the biggest technology companies. Aehr Test Systems surged 10.35%, while Camtek and Cohu rose 8.59% and 8.31%, respectively. The three companies operate across different stages of semiconductor manufacturing, including chip reliability testing, inspection and advanced processor packaging, according to a Simply Wall St report.
The gains followed the previous session's heavy selling and reflected a recovery across technology and semiconductor shares.
Meanwhile, US employment data showed nonfarm payrolls increasing by a stronger-than-expected 165,000. Annual wage growth came in at 3.1%, rather than slowing below 3% as anticipated. The benchmark 10-year Treasury yield rose to 4.86%. These developments provided a separate signal about the US economy and inflation, but were not identified as the direct trigger for the chip-stock recovery.
Despite the scale of Thursday's losses, Jefferies does not believe the selloff signals a fundamental change in the outlook for AI investment.
Equity strategist Jane Gibbons described the decline as a reaction to concerns about AI spending, policy and inflation, rather than a fundamental reset in the sector's prospects.
“We view Thursday's selloff as reactionary, not a fundamental reset, driven by a collision of concerns around AI spend, policy and inflation,” Gibbons said, as quoted by Reuters.
Goldman Sachs Group Inc. traders also see the possibility of a recovery after the sharp selloff. According to Bloomberg, they said the violent decline had pushed market panic to an extreme level, which historically has signalled the potential for a strong rebound over the medium term.
“The setup starts to look more interesting as forced selling runs its course,” traders including Lee Coppersmith wrote. They cautioned that this was not necessarily a reason to rush back into risk, but said the potential opportunity following the selloff was becoming harder to ignore.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Pranati Deva is a seasoned financial journalist with over a decade of experience in high-pressure newsroom environments, currently working as a Senior Sub Editor at LiveMint. Over the years, she has developed a reputation for sharp editorial judgement, a strong grasp of market dynamics, and the ability to translate complex financial developments into clear, engaging stories for a wide audience. <br><br> Her core areas of coverage include stock markets, leading listed companies, currencies, and commodities, with a particular strength in fast-paced, real-time market reporting. She is known for handling breaking market news, earnings-driven stock movements, and macroeconomic developments with speed, accuracy, and context—qualities that are essential in financial journalism. <br><br> Pranati has built a diverse and credible professional track record across some of India’s most respected news organisations, including MintGenie, CNBC-TV18, Business Standard and EconomicTimes.com. During her stints at these platforms, she produced data-driven market stories, curated and steered live blogs during volatile trading sessions, and conducted interviews with market veterans, fund managers, economists, and industry experts. Her work often combines on-ground reporting with analytical depth, helping readers make sense of daily market fluctuations and longer-term trends. An alumnus of the Symbiosis Institute of Media and Communications and Hansraj College, University of Delhi, Pranati brings a strong academic foundation to her journalism. She specialises in real-time financial reporting, with a keen focus on precision, balance, and insight, aiming to decode market movements in a way that is both informative and accessible to readers across experience levels.
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