US stock market today: Nasdaq, S&P 500 rebound after tech sell-off; Dow Jones falls 99 points

Wall Street staged a broad recovery on Friday (November 6), led by a sharp rebound in semiconductor stocks as investors stepped in to buy after the technology-heavy Nasdaq Composite slipped into correction territory following Thursday's steep sell-off.

The Nasdaq Composite climbed 1.9%, while the S&P 500 advanced 1%. The Dow Jones Industrial Average, however, remained in the red, falling 99 points, or 0.2%. Chip stocks led the recovery, with a gauge tracking major semiconductor companies jumping 6%, while the Nasdaq 100 gained 2%.

The rebound came after concerns over a possible slowdown in data centre construction triggered heavy selling on Thursday, following major Democratic victories in the House, Senate and key state gubernatorial races.

Investors also weighed a stronger-than-expected US jobs reading, which reinforced expectations that the Federal Reserve could raise interest rates in December.

Elsewhere, short-term US Treasury securities came under pressure, while oil prices fluctuated as traders assessed progress in efforts to de-escalate the Iran war.

Thursday's sell-off wiped out around $2.3 trillion in market value, with concerns over a potential slowdown in data centre construction and AI-related spending weighing heavily on investor sentiment.

Also, US job growth surged in October, and the unemployment rate edged lower, a sign of labour-market strength in an expanding economy. Nonfarm payrolls increased 165,000 last month, topping all forecasts, after an upward revision to the prior two months, according to Bureau of Labour Statistics data. The unemployment rate fell to 4.1%.

Employers across a broad range of sectors added jobs, including in professional and business services, healthcare and manufacturing. Overall private-sector payroll growth was the strongest since March.

Resilient consumer spending and strong business investment have supported demand and boosted corporate profits this year, encouraging companies to add more workers. Job growth has been uneven from month to month, but overall hiring has been strong enough to keep the unemployment rate low.

Federal Reserve officials will see one more jobs report and a full slate of inflation data before their next meeting in December. Investors expect them to raise interest rates at that gathering to counter inflation, following an increase in September and a subsequent decision to leave rates unchanged in October.

Nasdaq enters correction territory after sharp sell-off

The three major US stock indexes recorded their steepest single-day losses since April 2025 on Thursday. The Nasdaq Composite plunged 5.5%, closing more than 10% below its recent record high and entering correction territory. The S&P 500 declined 4.4%, while the Dow Jones Industrial Average shed more than 1,800 points, or 3.4%.

Chipmakers bore the brunt of the selling pressure, with Nvidia, Micron Technology, AMD and SanDisk among the stocks hit hardest.

However, some of these stocks staged a recovery in early Friday trading. Micron Technology shares climbed 9% after plunging 17% in the previous session, while Nvidia gained 3% following a 9% decline on Thursday.

The CBOE Volatility Index (VIX), Wall Street's widely watched fear gauge, had surged around 70% to 28 amid the sell-off, reflecting heightened market uncertainty, CNBC reported.