Nvidia leads chip rebound after AI-driven market sell-off
- Nvidia rose 4.5% after its worst trading session since January 2025.
- Semiconductor stocks rebounded following a sharp sell-off on November 5.
- Democratic election wins raise concerns over data-centre construction timelines.
- The CBOE Volatility Index hit a 19-month high before slipping on Friday.
- Airbnb shares surged 12.2% after lifting its 2026 revenue-growth outlook.
Nasdaq futures rose on Friday as chip stocks rebounded from the sharp sell-off recorded on Thursday. US stock futures showed mixed movement throughout the trading session.
On Friday, the Dow Jones Industrial Average fell 1%, the S&P 500 rose 0.3%, and the Nasdaq Composite rose 1.1%.
Investors utilized a "buy-on-dips" strategy for chip stocks on Friday following a selloff in the previous session.
Nvidia and semiconductor stocks recover
Nvidia shares rose 4.5% on Friday after experiencing their worst trading session since January 2025. Other semiconductor stocks, including AMD, Intel, Broadcom, and Micron Technology, advanced between 4.6% and 8.2% in pre-market trading.
These gains followed heavy selling on Thursday, when AMD fell nearly 11%, SK Hynix fell almost 8%, and Micron Technology fell 6.5%. Intel fell nearly 6%, Broadcom declined roughly 4.5%, and Nvidia fell roughly 3.8% during that same session.
Democratic election wins spark data-centre policy fears
Investors are concerned that Democratic election wins will lead to stricter AI regulation and hamper the growth of data-centre projects.
Market participants fear these political shifts will create increased restrictions, delays, and higher hurdles for new data-centre infrastructure.
Economic factors and market volatility
A stronger-than-expected October jobs report caused Treasury yields to rise, restricting gains in US equity futures. The CBOE Volatility Index posted its largest one-day increase in roughly 19 months on Thursday before slipping slightly to 26.70 on Friday.
The Thursday sell-off was described as reactionary rather than a fundamental reset, driven by a combination of concerns about AI spending, policy, and inflation. Oil markets saw mixed movement on Friday, with West Texas Intermediate oil rising 0.20% to $90.70 per barrel, while Brent Oil Futures fell 0.55% to $97.74 per barrel.
Brent crude futures were broadly flat on the day but remained on track for sharp weekly losses.
Airbnb surges on positive revenue outlook
Airbnb shares surged 12.2% following the company's decision to lift its revenue-growth outlook for 2026.
Global market concerns and historical context
The AI-driven market crash has impacted Asia, leading to a trading halt in Korea and a bear market in Japan, 24/7 Wall St. reported on Friday. On November 1, ChinaTalk reported that the Korean stock market crashed by $1 trillion.
Yahoo Finance reported on November 3 that historical patterns suggest the stock market will experience a significant move within the next six months. As background, the Wall Street crash of 1929 began in October 1929, triggering a loss of confidence in the US banking system and leading to the Great Depression. During that period, 12.9 million shares were traded on Black Thursday on October 24, and 16.4 million shares were traded on Black Tuesday on October 29.
Investor guidance on potential market crashes
CryptoTicker.io published a report on the proximity of a potential 2026 stock market crash and recommended investor actions on Friday. On the same day, Bloomberg released a glossary of financial terms intended for navigating a market meltdown. Investor's Business Daily also provided news and analysis regarding the stock market on November 5.
The Motley Fool suggested on November 4 that investors hold a 50-year dividend king stock to mitigate risks during a potential November market crash. Yahoo Finance reported on November 4 on Warren Buffett's advice for investors regarding how to handle a potential stock market crash. Banyan Hill Publishing published an article on November 5 questioning whether a stock market crash could be beneficial.
A financial advisor attributed a jump in the stock market to election results and a decline in oil prices in a report by KOLD on November 5.
Frequently Asked Questions
- Be ready for a stock market crash (uk.finance.yahoo.com)
- How to turn an AI stock markets crash into an investment opportunity (telegraph.co.uk)
- Stock markets plunge as Wall St tech rout rattles investors after midterm elections stoke fears of AI backlash (thisismoney.co.uk)
- Stock Market Live Updates: Nasdaq futures rebound as Nvidia, chip stocks recover after AI selloff (economictimes.indiatimes.com)
- US Stock Market Today: Nasdaq, S&P 500 Open Slightly Higher, After Rebound Post Chip Stocks Selloff, US Jobs Report (ndtvprofit.com)
- Wall Street crash of 1929 (Wikipedia — background) (en.wikipedia.org)
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