Stock Market Live Updates: Nasdaq futures rebound as Nvidia, chip stocks recover after AI selloff

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Stock Market Live Updates: US stocks open mixed on Friday, with the Nasdaq gaining 1.23% as chip stocks recover from heavy losses after a sharp AI-led selloff. The Dow falls 0.94%, while investors weigh concerns over tougher AI regulations and interest-rate hike risks following the latest US jobs report.

US stocks open mixed on Friday, with the Nasdaq advancing as chip stocks recover some losses after a sharp technology-led selloff. Investors assess the potential impact of tougher AI regulations under a Democratic-led Congress, while the latest US jobs report fuels concerns over further Federal Reserve rate hikes.

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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.