Nasdaq Rises As Chip Stocks Recover Amid Interest Rate Concerns

Technology stocks saw a positive start on Friday following a period of significant volatility. This rebound comes as investors weigh strong labor market data against the recovery of the chip sector.

Semiconductor Sector Recovery

Chip stocks led the morning recovery, with several major players erasing previous losses. Nvidia increased by 4.2% in premarket trading, while other firms including AMD, Intel, Broadcom, and Micron saw gains ranging from 5% to 9%. This bounce follows a sharp selloff driven by concerns that legislative changes could lead to tighter regulations on artificial intelligence, which might hinder the growth of data centers.

Labor Market And Rate Expectations

Economic data released on Friday indicated a resilient US labor market, as nonfarm payrolls for October grew more than anticipated and the unemployment rate dipped to 4.1%. While these figures demonstrate economic strength, they have heightened fears that the Federal Reserve may adopt a more hawkish stance. Consequently, traders have increased their bets on a potential interest rate hike in December, with the probability now estimated at 78%.

Market Indices And Individual Stocks

The broader market continues to face turbulence, with the Nasdaq Composite recently recording its most severe single-day drop in 19 months and moving into a correction phase. The S&P 500 is also on track for one of its worst weekly performances in recent history. Despite these trends, some individual companies saw significant movement; Airbnb shares rose nearly 14% after the company improved its 2026 revenue growth projections, whereas Atlassian fell nearly 16% following the release of its first-quarter results.