AI stocks rebound Friday as Wall Street trims weekly losses

New York, Nov. 6, 2026. Artificial intelligence stocks rose on Friday, recovering part of the losses they suffered during a two-day sell-off that had shaken global markets. The rebound helped the S&P 500 trim its weekly decline to 2.3% as investors assessed the economic implications of recent U.S. midterm election results.

The S&P 500 closed 0.7% higher on Friday. The Nasdaq composite gained 1.4%, while the Dow Jones Industrial Average slipped 84 points, or 0.2%, with an hour left in trading. This stability interrupted a broader global drop in equity prices. Tokyo and Seoul indexes had fallen 6% each after the U.S. market’s steep decline on Thursday, which marked the worst trading day since President Donald Trump introduced his “Liberation Day” tariffs in April 2025. Germany’s DAX index also lost 1.9%.

Nvidia, the chipmaker central to the AI infrastructure buildout, led the S&P 500’s recovery. Its stock climbed 3.6%, following drops of 9.3% and 3.2% earlier in the week. Investors had worried that Democratic victories in state legislatures might slow data center construction, particularly in Texas, where voters expressed concern over rising power bills associated with such facilities. These political concerns added to existing anxieties about high borrowing costs and potential overvaluation in AI sectors.

Other AI-linked companies also posted gains. IREN, a provider of data centers and software for AI training, reported quarterly results that exceeded analyst expectations. Its shares surged 19.4% after the company announced two new contracts. Co-CEO Daniel Roberts stated, “We own the land, the power and the data centers under all of it, which gives us more ways to fund growth and lets us set its pace.” Lam Research, a semiconductor equipment maker, rose 8.5% after announcing a share buyback program worth up to $25 billion.

CoreWeave, which rents access to AI chips via cloud services, increased 5.8%. Micron Technology, a memory chip manufacturer, climbed 5.6%. Outside the AI sector, market performance was mixed, with more S&P 500 stocks falling than rising. Axon Enterprise dropped 17.1% after reporting weaker quarterly results than expected and announcing a $1.2 billion investment in drone technology firm Skydio. Charter Communications fell 5.7% after posting a quarterly loss when analysts had projected a profit.

In the bond market, Treasury yields stabilized after earlier drops. The yield on the 10-year Treasury rose slightly to 4.85% from 4.84% late Thursday. This yield had peaked above 5.30% last month amid inflation and debt concerns. A report showing stronger-than-expected U.S. job growth last month supported bond yields. The data suggested the economy remains resilient, which could allow it to absorb a slowdown in AI data center construction. However, strong job growth also raised the possibility of the Federal Reserve raising short-term interest rates at its December meeting, according to CME Group data.

A separate University of Michigan survey indicated that consumer sentiment improved unexpectedly. Sentiment rose among lower- and middle-wealth Americans but declined among those with the largest stock portfolios. The survey also showed that expectations for inflation over the coming year eased. These developments provided support for bond markets by suggesting that high inflation expectations might not worsen further, potentially breaking a cycle where perceived inflation drives actual price increases.