AI stocks rebound after $2.5 trillion selloff, Nasdaq up 1.3%

AI stocks showed signs of recovery on Friday after a selloff erased about $2.5 trillion in market value on Wall Street, with the Nasdaq up 1.3% and Nvidia rising 5.5% at the open. The rebound followed sharp losses in Asian and European markets, with South Korea's Kospi and Japan's Nikkei 225 both falling 6%, while Taiwan's Taiex dropped 4.5%. European indexes saw more moderate declines, with the Stoxx 600 down 1.7%. The volatility stems from investor uncertainty over the Democratic victory in US midterm elections, with concerns that lawmakers could slow AI infrastructure investments. A Columbia Business School study estimated AI infrastructure spending accounted for nearly all US GDP growth late last year.