Global markets diverge as Wall Street rebounds, Europe slides after AI selloff

Global stock markets closed without a unified direction on Friday, with Wall Street posting a modest rebound after a sharp tech selloff driven by artificial intelligence concerns, while European markets remained under pressure. The Nasdaq gained 1.09% and the S&P 500 rose 0.31%, but the Dow Jones fell 0.46%. European indices declined, with Frankfurt dropping 1.92% after hitting a record high Thursday. The volatility followed a 5.52% plunge in the Nasdaq on Thursday, triggered by fears over stricter data center regulations after Democrats won both houses of Congress in the midterm elections. Asian markets also suffered heavy losses, with Seoul's Kospi falling 6.02% and Tokyo's Nikkei dropping 5.96%. Chip stocks partially recovered, with Nvidia up 2.78% after a 9.30% decline. Stronger-than-expected US jobs data for October supported markets, though analysts cautioned the rebound was partial, and the Nasdaq remains in correction territory, down over 10% from its early October peak.