AI stocks climb back after trillions wiped off, Nasdaq opens up 1.23 percent
Shares in artificial intelligence and technology firms have started to climb following an enormous sell-off on Thursday that wiped trillions of dollars off stock values.
The tech-heavy Nasdaq stock index opened higher following a market rout that began in the US on Thursday before spilling over to Asian and European markets into Friday.
Investors had been selling off tech shares in part due to concerns the Democrat victory in the midterm elections would mean slower artificial intelligence development.
However, the latest US employment figures added to a mixed picture for American markets on Friday morning, with an unexpectedly strong 165,000 jobs added to the economy in September.
US employers added 165,000 new jobs in October, well above the average monthly increase and more than double what analysts had expected.
The unemployment rate eased slightly to 4.1 percent from 4.2 percent in September. The Bureau of Labor Statistics said the unemployment rate has remained in the narrow range of 4.1 percent to 4.3 percent since March.
The increase in jobs was led by the professional and business services sector, which added 70,000 jobs. The healthcare sector added 42,000 jobs, and jobs were also added in transportation and warehousing as well as manufacturing.
On Thursday, businesses closely linked to artificial intelligence development took a hammering on stock markets, particularly chip and semiconductor makers. The Nasdaq fell by 5.5 percent and the S&P 500 by 4.4 percent that day, wiping more than $3.2 trillion from the value of the US stock market.
The Nasdaq Composite opened up 1.23 percent on Friday and continued to gain in early trading, reversing some of its 5.5 percent fall.
Nvidia, which shed hundreds of billions in market value on Thursday after shares slid more than 9 percent, began Friday trading up more than 6 percent.
SpaceX and Tesla shares, which were also hammered on Thursday, saw more mixed gains, up more than 7 percent and nearly 3 percent respectively.
Chipmakers AMD and Micron both dropped by more than 17 percent on Thursday, but AMD shares had risen by about 12 percent on Friday while Micron was up more than 8 percent.
The S&P 500 also opened up slightly and gained, while the Dow Jones Industrial Average opened a little down and then stayed flat.
US President Donald Trump on Friday reiterated his support for what he calls 'super intelligence', saying only 'foolish leadership' would 'say no to the riches they bring'.
Russ Shaw, founder of global tech advocacy firm Tech London Advocates, told the BBC the election result was sending a message that a rethink was needed on AI, and that the incoming Congress is going to focus on AI in a very dramatic way.
Neil Birrell, chief investment officer at investment firm Premier Miton, said while the jobs figures may feel like second billing to the market movements they were still important, adding that the US economy is running hard, which may mean the risks markets are worrying about are not such a risk to the real economy as is being feared.
