Business · Markets · 1 day ago
Wall Street rebounds as chip stocks recover from AI selloff
Wall Street stocks mostly rose on Friday, reversing some of the AI-driven selloff from the previous session.
The rebound was led by chipmakers, with the Nasdaq and S&P 500 higher while the Dow fell.
Investors had sold shares amid concerns that Democratic election victories could lead to tighter rules for the AI industry.
Texas Governor-elect Gina Hinojosa said the state plans new laws to protect communities from the growing number of data centres.
Investors are also worried that the high cost of data centres and other AI infrastructure may limit future profits.
Despite Friday's gains, all three major US indexes lost ground for the week.
Markets remained unsettled, while stocks in Europe and Asia also fell on Friday.
Wall Street stocks mostly rebounded on Friday after a heavy selloff linked to fears of tighter US regulation of the AI industry.
The Philadelphia Semiconductor Index rose 4.2%, while Nvidia and other major chipmakers also gained.
The S&P 500 and Nasdaq finished higher, but the Dow fell, and all three indexes recorded weekly losses.
Investors remained concerned that political uncertainty and the high cost of AI infrastructure could limit future returns.
Markets in Europe and Asia fell, with Japan’s Nikkei and South Korea’s KOSPI each dropping about 6%.
- Who
- US stocks and major chipmakers, including Nvidia, AMD, Intel and Micron Technology.
- What
- Wall Street mostly rebounded after an AI-related selloff, led by gains in chip stocks.
- When
- Friday. The reports were published on November 7, 2026.
- Where
- Wall Street and US markets.
- Why
- Investors were concerned that Democratic election victories could lead to tighter AI regulation, and that the cost of AI infrastructure could limit future returns.
This story does not have two clearly opposing sides.
Wall Street suffered a heavy selloff amid concerns about tighter AI regulation.
Texas Governor-elect Gina Hinojosa said the state would introduce laws to protect local communities from further mass data-centre growth.
Wall Street stocks mostly rallied, with the Philadelphia Semiconductor Index up 4.2%.
- Philadelphia Semiconductor Index
- Rose 4.2%
- Nvidia
- Rose nearly 3% in the Business Standard report
- S&P 500
- Rose 0.31% at the close in the Business Standard report
- Nasdaq Composite
- Gained 1.1% at the close in the Business Standard report
- Dow Jones Industrial Average
- Fell 0.46% at the close in the Business Standard report
- US nonfarm payrolls
- Increased by 165,000
4 sources
What people are saying
Most of the disruption of the AI buildout will not probably occur but it's just the uncertainty of the change in government from Republican-led to Democratic-led, not only at the federal level but the state, local levels
The volatility around elections or any political event, whether it be war or terrorist attack, is always going to disrupt the market.