A look at the recent market volatility impacting technology and artificial intelligence firms, following a sell-off that wiped trillions in value before a partial rebound on Friday.
Markets also processed new US employment figures and broader economic indicators.
Why did the markets fall?
The initial decline was partly driven by investor concerns that a Democratic victory in the midterm elections could slow the development of artificial intelligence. Democrats won control of both houses of Congress, as well as crucial races in states related to the development of large data centers, having campaigned on new rules and regulations for the industry. For his part, Donald Trump reiterated his support for artificial intelligence, saying that only poor leadership would reject the benefits it can offer.
The picture of recovery
On Friday morning, the indices started to move higher. The Nasdaq opened up 1,23%, paring some of the 5,5% drop it had recorded on Thursday. The S&P 500 opened with slight gains, while the Dow Jones Industrial Average saw a small decline at the start.
Individual companies that had been hit hard saw their shares recover. Nvidia rose more than 6%, after losing more than 9% of its value on Thursday. Meanwhile, shares of SpaceX and Tesla posted mixed gains, rising more than 7% and nearly 3%, respectively.
The employment trend
Meanwhile, new data on the US economy showed that employers added 165.000 new jobs in October, double the number expected by analysts. The unemployment rate fell slightly to 4,1% from 4,2% in September, remaining steady at the same low level since March. The professional and business services sector recorded the largest increase with 70.000 new jobs, followed by health care, transportation and warehousing. According to market analysts, the strong economic data suggests that risks in the stock markets may not threaten the broader economy to the same extent.
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