The Nasdaq Composite closed higher on Friday, recovering slightly after a sharp fall the previous day. Investors bought major technology stocks again, helping the tech-heavy index end its three-day losing streak. The Nasdaq rose 0.13% to finish at 22,900.59. The S&P 500 ended almost flat, slipping just 0.05% to 6,734.11. The Dow Jones Industrial Average fell 309.74 points, or 0.65%, to close at 47,147.48.
All three major indexes had opened much lower earlier in the day. At one point, the Nasdaq was down nearly 1.9% and the S&P 500 was down 1.4%. The Dow had dropped almost 600 points. But the market steadily recovered as investors returned to tech stocks.
Several major technology companies saw their shares bounce back. Nvidia, Oracle, Tesla and Palantir all reversed the heavy losses they faced on Thursday. The Technology Select Sector SPDR Fund (XLK) gained 0.5%, making up some of its 2% decline from the previous session.
Thursday had been the worst day for U.S. markets since October 10. The Dow fell about 800 points that day, pulling back from gains made earlier in the week. The Nasdaq dropped more than 2% as tech companies took the biggest hit.
According to Brian Mulberry from Zacks Investment Management, investors are shifting between “risk-on” and “risk-off” trading. He said people may be adjusting their investments as the year ends and 2026 approaches, given how much money has been concentrated in big tech stocks. He added that market volatility may continue, with more 1% to 2% swings expected.
For the week, the Nasdaq fell 0.5%. Meanwhile, the S&P 500 rose 0.1% and the Dow gained 0.3%.
A growing concern this week has been the rapid rise and volatility of AI-related stocks. Oracle’s recent losses worried investors about high tech valuations, large borrowing levels and expensive AI spending plans. Experts say AI growth is hard to measure, making markets more unstable.
Uncertainty around the Federal Reserve’s interest rate decision is also adding pressure. Expectations of a rate cut in December have dropped sharply. Some Fed officials believe inflation is still too high to allow another cut this year.
Overall, despite the recovery on Friday, investors remain cautious as markets continue to face uncertainty.
