Stock Market Highlights: US stocks rebound, but Nasdaq posts fourth straight weekly decline

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Stock Market Highlights: US stocks rebound on Friday as chipmakers recover from steep losses in the previous session. The Nasdaq rises 1.73%, while the S&P 500 gains 1%, supported by Nvidia and other semiconductor stocks. Strong October jobs data, however, fuel bets on a December Fed rate hike.

US stocks trade higher on Friday as chipmakers recover from Thursday's steep selloff triggered by concerns over tighter AI regulations. Nvidia, AMD, Intel and Micron advance, lifting the Nasdaq and S&P 500. However, stronger-than-expected October jobs data raise concerns over further Fed rate hikes.

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S&P 500 climbed 0.32% to end the session at 7,376.92 points. The Nasdaq gained 1.09% to 24,579.43 points, while the Dow Jones Industrial Average declined 0.46% to 51,286.21 points.


Nasdaq rebounds from tech rout

Nasdaq rebounds from tech rout

Out-of-court debt restructuring negotiations between Brazilian petrochemical producer Braskem SA and its creditors have stalled after bondholders rejected a proposal involving $3.8 billion in debt-to-equity conversions. In response to the breakdown during meetings in New York, major shareholders Novonor and Petrobras withdrew a conditional $1.4 billion capital injection offer.


With key parties unable to reach consensus on restructuring terms, the prospect of bankruptcy protection has re-emerged as a viable path for the company. Braskem stated that it maintains routine communication with the market and will disclose any formal material developments through official regulatory channels.

Major commodity trading houses, including Trafigura, Vitol, Mercuria, and ADNOC, are negotiating with the US government to secure licenses to buy or lease previously sanctioned oil tankers. The effort aims to rehabilitate up to 50 blacklisted vessels from the "dark fleet" to transport non-sanctioned crude, addressing a severe global shipping shortage and mitigating record-high freight costs that have kept oil prices hovering near $100 a barrel following the war with Iran.


The US Treasury and Office of Foreign Assets Control are reviewing the requests on a case-by-case basis as the Trump administration attempts to bring down domestic pump prices following midterm election losses. While the rehabilitated tankers—many of which are older—may present maintenance concerns, officials hope deploying them on shorter regional routes will free up newer supertankers for long-haul voyages and ease global supply bottlenecks.

The US Supreme Court agreed to hear a challenge from Goldman Sachs on whether bankruptcy courts have the authority to override valid arbitration agreements. The investment bank is urging the high court to resolve a circuit split over whether claims under Section 362(k) of the US Bankruptcy Code—which penalizes creditors for violating automatic litigation stays—must be submitted to arbitration under the Federal Arbitration Act.


The case stems from a Fourth Circuit ruling that denied Goldman Sachs' bid to compel arbitration in a lawsuit brought by Apple Card account holders, with the majority ruling that arbitration inherently conflicts with the centralized purpose of bankruptcy law. The Supreme Court's decision will address the long-standing legal tension between the Federal Arbitration Act's strong policy favoring arbitration and the Bankruptcy Code's centralized dispute resolution framework.

Bitcoin settled near $75,600 on Friday after a steep 6% plunge from above $80,000, mirroring a broader selloff in high-risk assets sparked by poor chipmaker earnings and the Democratic victory in the US midterm elections. Digital assets like Ether, Solana, and BNB remained flat as selling pressure eased, though analysts cautioned against viewing the brief pause as a full recovery without stronger catalysts.

The cryptocurrency sector remains under pressure following a recent $6.3 billion hack on Binance and ongoing volatility in AI-related tech stocks, to which many Bitcoin miners are linked. Investors pulled $430 million from US spot Bitcoin ETFs on Thursday, highlighting cautious sentiment as traders watch whether the asset can hold the $75,000 support level or regain momentum above $77,000.

US President Donald Trump held a phone call with Qatar’s Emir Sheikh Tamim bin Hamad Al Thani to evaluate diplomatic efforts aimed at resolving the war with Iran. Qatar, serving as a primary mediator alongside other Gulf partners vulnerable to Iranian strikes, reiterated the necessity of diplomatic solutions to secure energy supply lines and restore freedom of navigation through critical maritime routes. In parallel, Iranian Foreign Minister Abbas Araghchi engaged regional counterparts to present proposals for restarting formal negotiations, including reopening the Strait of Hormuz and addressing nuclear concerns.


The diplomatic push comes amid continued regional violence, highlighted by a devastating market airstrike in Yemen’s Taiz province that killed at least 30 people and wounded several others. Additionally, European diplomatic friction emerged in the occupied West Bank after Israeli authorities detained multiple Italian activists and journalists assisting Palestinian farmers during the olive harvest, prompting Italy’s foreign ministry to demand their immediate release and access.

Recent US employment reports have repeatedly caught forecasters off guard, with October nonfarm payroll gains of 165,000 far exceeding all economist estimates. This growing divergence between forecasts and official figures stems largely from a 20% inflation-adjusted funding cut for the Bureau of Labor Statistics since 2010. Reduced field resources and falling survey response rates have widened statistical error margins, making monthly data inherently more choppy and prone to unexpected swings.


Additionally, strict immigration policies have suppressed overall labor supply growth, keeping monthly job additions close to zero by historical standards where normal market noise can easily skew predictions. Recent updates to the government's business birth-death model have introduced further short-term volatility, signaling that investors and policymakers should focus on long-term employment trends rather than individual monthly figures.

US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer held a video call with Chinese Vice Premier He Lifeng, urging Beijing to immediately fulfill its commitments under the Busan trade agreement. American officials specifically raised concerns about delays in promised agricultural purchases and the steady export flow of rare earth elements and critical minerals.


The warning comes ahead of an upcoming meeting between President Donald Trump and President Xi Jinping at the APEC summit, as well as the looming expiration of key US tariff exclusions on Chinese goods. Washington stressed that future progress and stability in bilateral trade relations depend entirely on concrete results from Beijing.

A strong post-election rally in the US Treasury market paused after October employment figures beat expectations, renewing speculation of a Federal Reserve interest rate hike next month. The midterm election results had initially driven a flight to safety from tech stocks into government bonds, pulling yields down to early September lows. However, the unexpected drop in unemployment to 4.1% and faster wage growth quickly pushed short-term yields higher as traders priced in a quarter-point rate increase for December 9.

Despite the initial pullback, Treasuries recovered much of their daily losses as investors weighed potential fiscal gridlock and reduced tech spending under a divided government. Federal Reserve officials signaled that the solid labor market provides room for further monetary tightening to combat persistent inflation, even as tumbling oil prices ease longer-term inflation expectations.

The US economy added 165,000 jobs in October as the unemployment rate unexpectedly dropped to 4.1%, driven largely by shifting labor dynamics and a manufacturing turnaround. All net labor force participation and employment gains since July were powered by foreign-born workers, reversing earlier workforce contractions. Meanwhile, the factory sector added 101,000 jobs since December 2025, bringing manufacturing employment back into positive territory for the current presidential term.


Despite stronger overall hiring, workers who lose their jobs are facing prolonged periods of unemployment, with median and average search durations reaching their highest levels in nearly a decade outside the pandemic. At the same time, artificial intelligence continues to show mixed effects across industries, with information and finance sectors shedding jobs while professional and business services posted substantial gains.

US energy firms added rigs for the first time in four weeks, bringing the total oil and gas count up by one to 604 for the week ending November 6. According to energy services firm Baker Hughes, this marks the highest overall level since May 2024 and represents a 10% increase compared to the same period last year.


The rebound in drilling activity follows years of production restraint, buoyed by expectations of rising domestic crude prices driven by Middle Eastern supply disruptions. Additionally, the US Energy Information Administration projects record-setting oil and gas output for 2026 to support surging energy demand from data centers and liquefied natural gas exports.

The Federal Reserve's case for another interest rate hike in December has gained momentum after stronger than expected US employment data reinforced signs of economic resilience, shifting attention back to persistent inflation from concerns over a potential AI driven slowdown, Reuters reported.


Read more: Strong US jobs data revive December Fed rate hike bets

US options trading surged to its highest single-day volume on record as Thursday's stock market plunge sent investors scrambling to hedge their portfolios. Total trading reached over 112 million contracts, jumping 53% above October's daily average, with put options accounting for more than half of all activity as bearish sentiment dominated the floor.


The aggressive wave of hedging drove costs sharply higher across financial markets. The Cboe Volatility Index spiked to levels not seen since March as major indexes tumbled, led by a 4.4% drop in the S&P 500 and a steep 6%-plus decline in the Nasdaq 100.

Microsoft is turning off rented computing capacity from Oracle after opting not to renew its contract, according to Bloomberg News. The move marks a gradual phaseout of Microsoft's reliance on Oracle's cloud infrastructure for its artificial intelligence workloads.

OpenAI will continue expanding its US data centers despite a Democratic midterm victory that raised concerns over stricter regulatory oversight. Chief Financial Officer Sarah Friar affirmed the company's commitment to meeting surging customer demand while adopting greater transparency, including eliminating non-disclosure agreements with local officials and sharing site plans publicly to alleviate community concerns.


Addressing broader market anxiety after Thursday's sharp selloff in tech stocks, Friar confirmed that OpenAI is proceeding with fresh fundraising following a 70% quarter-over-quarter revenue increase. She noted that enterprise adoption doubled during the third quarter, signaling strong end-user demand even as competitors face valuation adjustments and IPO uncertainties.

The US dollar has quickly regained its footing following the midterm elections, supported by underlying economic resilience and expectations for further Federal Reserve interest rate hikes. Although initial political gridlock briefly weighed on the currency, a sharp rebound in haven demand during Thursday's stock market rout and strong Friday employment data helped drive a two-day rally.

Key strategists at major financial institutions view the greenback as the strongest option among major global currencies, citing robust US economic growth relative to Europe and Japan. While potential regulatory uncertainty and shifting capital flows could limit near-term upside, options market sentiment remains near its most bullish levels since early 2025.

Millennium Management is losing at least two more internal credit trading pods, Abacove Capital and Twin Lights, amid heightened volatility across global debt markets. The departures of managers Dominick Maggio, Amit Agrawal, Mark Meenan, and David Ulrich follow recent capital withdrawals from other credit-focused teams at the multistrategy hedge fund giant.


The exits come as widening high-yield spreads, rising interest rates, and tech-driven market selloffs hit fixed-income performance. Driven by October's market turbulence, Millennium's overall fund fell 2.3% last month, joining several major hedge funds in scaling back or restructuring underperforming credit strategies.

Elon Musk announced that US government contracts will account for less than 10% of SpaceX’s revenue this quarter, continuing a steady decline from 16.6% in the previous quarter and roughly 20% in 2025. While NASA and the Pentagon remain key partners for astronaut launches and satellite missions, the rocket maker's financial dependence on federal funding is rapidly shrinking.

The shift reflects SpaceX’s aggressive pivot toward its expanding artificial intelligence unit, which now generates the majority of its income by leasing out data center computing power. Tech firm Anthropic has emerged as SpaceX’s single largest customer, bringing in over a third of the company’s total revenue as AI operations surpass its core launch and connectivity businesses.

The United States and Iran are making progress toward ending their conflict, with Tehran considering Qatari proposals to address its nuclear program. The diplomatic shift follows months of stagnation after a June peace agreement collapsed. Any movement on atomic transparency could prove decisive in securing a broader deal, particularly as President Donald Trump seeks an exit from a war that severely hurt his party in recent elections.


Political pressure from the US midterm results, driven by public frustration over high energy prices, has created fresh momentum for de-escalation. While Qatari mediators continue active diplomacy across the region, falling oil prices reflect growing market expectations that both sides may finally avoid further military escalation.

US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer pressed Chinese Vice Premier He Lifeng to swiftly honor the terms of the Busan trade agreement. The Treasury Department confirmed the discussion focused on key aspects of ongoing economic relations between the two nations.

Microsoft has been turning off rented computing capacity from Oracle in recent months after opting not to renew its contract, according to Bloomberg News. The decision marks a shift as Microsoft steps back from renting external cloud infrastructure for its AI workloads.

A stronger-than-expected October jobs report bolsters the case for further Federal Reserve interest-rate hikes that had lost some of its moxie amid the post-election swoon in US stocks and a mounting sense that AI-driven demand could screech to a halt.

US employers added 165,000 jobs last month, more than twice what economists had expected, the Bureau of Labor Statistics said on Friday, and the unemployment rate ticked down to 4.1%. Fed Chairman Kevin Warsh last month said that policymakers would be watching for "the accumulation of data" to help decide if more monetary policy tightening would be needed, and the latest labor market report provided a definitive tick in the "yes" column.

Friday's employment report put a Fed rate-hike back in focus. Markets after the report were pricing about an 85% chance of a quarter-point policy rate increase at the Fed's December 8-9 meeting, compared with about 75% before.

- Steve Sosnick, Chief Strategist, Interactive Brokers

- Dong Baozhen, Chairman, Lingtong Shengtai, Beijing

- Guy Miller, Chief market strategist, Zurich Insurance Group

Nu Holdings Ltd. temporarily suspended cryptocurrency deposits and withdrawals for its Brazilian clients following a technical issue with an unnamed external provider. The fintech giant, which serves roughly 120 million customers in Brazil, assured users that all assets and personal data remain fully protected and that its core infrastructure was not compromised.


The disruption comes amid broader security jitters across the crypto sector after recent high-profile hacks hit major platforms like Binance and Mercado Bitcoin. Nubank confirmed that its other crypto-related products continue to operate as normal, though it did not specify when full transaction services would resume.

Anthropic’s upcoming initial public offering faces mounting pressure as a sharp market selloff prompts prospective buyers to reconsider the company's expected valuation. Potential investors are now discussing a target range between $1.1 trillion and $1.3 trillion, down significantly from earlier estimates of up to $2 trillion. The shift follows a record single-day drop in tech equities triggered by post-election regulatory concerns surrounding artificial intelligence expansion.


Despite the heightened market volatility, market strategists expect the Claude creator to move forward with a more conservative valuation target rather than risk a costly delay. Pricing the offering carefully could help Anthropic build initial investor confidence and avoid severe secondary market swings once trading begins.

Central bankers around the world must account for any potential deceleration in AI-driven economic growth as they evaluate their ongoing fight against inflation. International Monetary Fund Managing Director Kristalina Georgieva highlighted that growing market anxieties surrounding heavy dependence on artificial intelligence investments and elevated stock valuations are already creating widespread global volatility.


This ongoing market instability is set to complicate decision-making for central banks at a delicate moment when risks to price stability are already escalating. Georgieva emphasized that fluctuating market dynamics will likely persist, forcing policymakers to carefully weigh broader economic momentum alongside persistent inflationary pressures.

Euro zone government bond yields held steady on Friday but remained on track for a weekly fall as a sharp selloff in US tech stocks drove investors toward safe-haven assets. Germany's benchmark 10-year yield held at 3.25% after dropping to its lowest level since August, while French yields continued to ease following recent volatility over the country's fiscal deficit.


The flight to safety also prompted traders to scale back their expectations for future European Central Bank rate hikes, pricing in lower long-term interest rates amid concerns over global economic growth. Even after stronger-than-expected US employment figures helped equities regain some stability, euro zone sovereign debt yields remained pinned down by ongoing market caution.

As the global AI sell-off intensifies, investors are questioning whether IPO-bound Anthropic can sustain its $1.5 trillion valuation ambition. Prominent US investor Michael Burry has also raised doubts about whether the AI firm's major partners, including Amazon, Google's parent company Alphabet and Microsoft, are helping polish its financials ahead of its planned IPO.


Read more: Burry questions Big Tech's AI valuation

Federal Reserve Governor Lisa Cook is demanding guarantees regarding fairness, neutral oversight, and evidence disclosure from the White House before agreeing to attend a December 14 hearing aimed at evaluating her removal. President Donald Trump has tried to fire Cook since August 2025 over mortgage fraud allegations, which she denies and frames as a pretext to oust her over interest rate policy.


While a June Supreme Court ruling prevents the president from firing a Fed governor at will, it allows removal for cause if the official receives a fair opportunity to defend themselves. Top economic aide Kevin Hassett confirmed the White House intends to proceed with the scheduled December hearing despite the procedural objections raised by Cook's legal team.

Apple successfully raised $7.5 billion in a high-grade bond sale, drawing strong interest from buyers eager for non-AI tech debt even as broader market volatility triggered a selloff.

Fears of tighter regulation and data center halts sparked a massive tech selloff following Democratic victories in the US midterm elections, where several winning candidates ran on anti-AI platforms. The fallout sent the Philadelphia Semiconductor Index down 12% and the Nasdaq 100 down 6.4% on Thursday—their worst single-day drops since March 2020—wiping out more than $440 billion in market value from Nvidia alone.

Although tech stocks mounted a modest rebound on Friday, investors remain deeply cautious about buying the dip given the uncertain regulatory landscape. With estimates suggesting nearly a third of projected US computing power by 2028 could now be at risk, Wall Street is actively scaling back long-term growth assumptions and repricing high-flying AI valuations across the board.

A rally in semiconductor stocks pushed the Nasdaq 100 up 2% as dip buyers stepped in following a sharp technology selloff. The rebound came alongside a unexpectedly strong US jobs report, which showed nonfarm payrolls rising by 165,000 and unemployment dropping to 4.1%.

While the blowout employment figures reassured investors about the economy's underlying strength, they also sent short-dated Treasuries lower as traders priced in a higher chance of a Federal Reserve rate hike in December. Analysts noted that while Main Street remains on solid footing, tighter financial conditions could still weigh on future growth.

The Nasdaq opened higher on Friday as chip stocks came off heavy losses posted during a sharp selloff on fears that a Democratic-led Congress could result in tougher AI regulation, even as the jobs report raised interest-rate hike concerns.

Read more: US stocks trade mixed

Gold prices slipped 0.4% on Friday to $4,070.59 per ounce as fluctuating crude oil prices sustained persistent inflation concerns ahead of critical U.S. non-farm payrolls data. Despite the daily decline, bullion remained on track for a 5% weekly gain, its best performance since late August, supported by broader market volatility and safe-haven demand. Oil price movements tied to Middle East supply dynamics and de-escalation prospects following the U.S. midterms continued to influence expectations around energy-driven inflation and the Federal Reserve's potential interest rate path.


The broader macroeconomic environment presents mixed signals for precious metals, with Goldman Sachs lowering its end-2026 gold price forecast to $4,150 per ounce due to a more hawkish Fed outlook. Lower spot prices in recent sessions encouraged physical buying in India ahead of the Diwali festival, providing localized demand support. Meanwhile, other precious metals including silver, platinum, and palladium were also positioned to wrap up the week with solid gains.

The U.S. dollar gained against major world currencies on Friday as global investors sought safe-haven assets amid a widening selloff in artificial intelligence stocks. The tech-heavy Asian markets dropped sharply, and European equities extended losses following Thursday's Wall Street plunge, which was triggered by fears of tighter regulation and data center restrictions following Democratic gains in the U.S. midterms. Unlike previous tech downturns, capital rotated directly into cash and U.S. Treasuries, driving down two-year Treasury yields to 4.48% as the dollar advanced against the euro, sterling, and risk-sensitive growth currencies like the Australian dollar.


Market focus now turns to the upcoming U.S. non-farm payrolls report for signals on the Federal Reserve's future interest rate path. Investors are weighing resilient labor market data—highlighted by weekly jobless claims matching a 57-year low of 189,000—against tightening financial conditions caused by the market pullback. Consequently, money markets have scaled back expectations for a 25-basis-point Fed rate hike in December to around 65%, down from over 80% earlier in the week.

- Jane Gibbons, equity strategist at Jefferies

Among individual stocks, Airbnb jumps 12.2% in premarket trading after raising its full-year 2026 revenue growth forecast. In contrast, software company Atlassian falls 14.1% after reporting its first-quarter results. Tesla and SpaceX also recover, gaining 2% and 4%, respectively, after sharp declines over the previous two sessions. Meanwhile, the Dow and S&P 500 futures remain mixed as investors assess the broader market outlook.

Investors assess crude oil prices and the October nonfarm payrolls report for clues on inflation and the Federal Reserve's interest rate outlook. Brent crude futures remain broadly flat on Friday but are set for sharp weekly declines. The S&P 500 energy index is on track for a weekly fall of more than 11%. Meanwhile, traders are pricing in more than a 65% chance of a December rate hike, according to the CME FedWatch Tool.

Investors remain concerned that Democrats' midterm election victory could lead to tougher AI regulation and slow the expansion of data centres. The election results in several key data-centre states have added to uncertainty around the sector's growth prospects. The CBOE Volatility Index, Wall Street's fear gauge, recorded its biggest one-day jump in about 19 months on Thursday before easing slightly to 26.70 on Friday.

Nvidia gains 4.5% in premarket trading after recording its worst session since January 2025, when the emergence of Chinese AI model DeepSeek rattled Wall Street. Other semiconductor stocks also advance, with AMD, Intel, Broadcom and Micron Technology rising between 4.6% and 8.2%. Data centre operators IREN and Applied Digital, along with neocloud companies CoreWeave and Nebius Group, also recover from steep losses in the previous session.

US Nasdaq futures climb on Friday as chip stocks recover from Thursday's sharp technology-led selloff. The previous session wiped nearly $3 trillion off the market value of S&P 500 companies amid concerns that Democratic control of Congress could result in tougher AI regulation. The Nasdaq Composite plunged 5.46%, its steepest one-day decline in 19 months, and entered correction territory. The index is also heading for its fourth consecutive weekly decline.