US stocks staged a partial rebound on Friday, November 6, 2026, with chip stocks leading the recovery one day after Wall Street suffered its worst session since April 2025.
The tech-heavy Nasdaq Composite climbed about 1.8% in early trading, while the benchmark S&P 500 gained roughly 1%. The Dow Jones Industrial Average, by contrast, slipped about 0.2%, a sign that the recovery was uneven and confidence remains fragile.
Thursday's rout: Nasdaq's worst day in 19 months
The rebound came after a brutal Thursday session. The Nasdaq plunged 5.52% to 24,315.00, its biggest one-day point drop on record and its steepest percentage fall since April 2025, pushing the index into correction territory, more than 10% below its recent record high. The S&P 500 fell 4.36% to 7,353.73, while the Dow shed more than 1,800 points, or 3.44%, to 51,523.06. The small-cap Russell 2000 dropped 4.4%.
The sell-off was triggered by Tuesday's midterm elections, in which Democrats won control of both the House of Representatives and the Senate. Investors feared a Democratic Congress could slow the artificial intelligence boom by tightening regulation of data centers and big technology companies.
Chip stocks bore the brunt. Nvidia fell more than 9% on Thursday and entered bear market territory, down over 20% from its October peak of 243.37. The iShares Semiconductor ETF dropped 12%, and Tesla erased about $221 billion in market value over two days.
Friday's rebound: chips lead, jobs report beats
Bargain hunters returned on Friday. The semiconductor ETF jumped about 6% in early trading, Nvidia rose nearly 7%, Advanced Micro Devices surged more than 10%, and Lam Research and SanDisk each gained about 10%.
Sentiment was also lifted by a stronger-than-expected October jobs report. The US economy added 165,000 jobs in October, well above expectations of around 70,000 and the biggest monthly gain in seven months, while the unemployment rate fell to 4.1%.
Elsewhere, the 10-year Treasury yield stood near 4.84%, West Texas Intermediate crude traded around $90.50 a barrel, and Bitcoin hovered near $75,900.
Corporate earnings have remained a bright spot. Of the 419 S&P 500 companies that have reported third-quarter results so far, 84% have beaten estimates, and overall third-quarter earnings are expected to climb about 31% from a year earlier.
Even so, all three major indexes remain on track for weekly losses, with the Nasdaq and S&P 500 heading for a fourth consecutive weekly decline.
This article is for information only and is not financial advice.
Sources: Investopedia, Investor's Business Daily, Barchart, Barron's, Pulsafi.
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