From mint · Pranati Deva · · 1m 20s
US Tech Stocks Crash and Rebound in Two Sessions
US tech stocks crashed then rebounded in two sessions as AI trade fears eased.
In brief
US tech stocks crashed then rebounded in two sessions as AI trade fears eased. Nvidia, AMD, Intel and Micron shares recovered 5-11% after Thursday's 2.5 trillion market value loss. Originally reported by mint.
Tech Stocks Crash
US technology stocks plunged 5.52% on Thursday, wiping out $2.5 trillion in market value.
“The Nasdaq Composite plunged 5.52% to close at 24,315, officially entering correction territory after falling more than 10% from its October peak”
AI Trade Fears
Investor anxiety over ai data centre expansion and regulation intensified after democrats swept the us midterm elections.
“Concerns grew that opposition among voters to the expansion of data centres could translate into a regulatory shift”
S&P 500 Decline
The s&p 500 dropped 4.36% to 7,353.73, with all 11 sectors ending in the red.
“The S&P 500 tumbled 4.36% to 7,353.73, with all 11 sectors ending in the red”
Friday Rebound
Tech stocks rose 0.31% on friday as investors bought beaten-down semiconductor shares.
“The Philadelphia Semiconductor Index climbed 4.2% while nvidia gained nearly 3%”
Nvidia Impact
Nvidia suffered its worst trading session since january 2025 after ai model deepseek triggered selloff.
“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”
Market Recovery
The nasdaq rose 0.31% to 7,376.86 while dow jones fell 237.33 points on friday.
“The S&P 500 rose 0.31%, or 23.13 points, to close at 7,376.86”
AI Analyst View
Equity strategist jane gibbons described the decline as reactionary, not a fundamental reset for ai investment.
“We view thursday's selloff as reactionary, not a fundamental reset, driven by a collision of concerns around ai spend, policy and inflation”
Goldman Sachs Outlook
Goldman sachs traders see potential rebound after violent selloff pushed market panic to extreme levels.
“The setup starts to look more interesting as forced selling runs its course”
Market Recovery Details
AMD, intel and micron technology advanced 5-11% while tesla rose 4% and space x gained 9%.
“AMD, Intel and Micron Technology advanced between 5% and 11%”
What's Next
Jefferies does not believe the selloff signals fundamental change in ai investment outlook.
“Jefferies does not believe the selloff signals a fundamental change in the outlook for ai investment”
The key point
Nvidia, AMD, Intel and Micron shares recovered 5-11% after Thursday's 2.5 trillion market value loss.
