Tech stocks rebound as chip shares recover from AI selloff

Tech stocks rebounded Friday, with the Nasdaq Composite rising 1.9% in morning trading, as chip and data center shares recovered from a massive selloff that erased about $2.5 trillion from the index a day earlier. Micron climbed nearly 7% after a 17% slide, while Nvidia gained 6% following a 9% drop. The S&P 500 rose 1%, but the Dow fell 99 points. Thursday's losses, which pushed the Nasdaq into correction territory, were the worst for major averages since April 2025 and spread to Asian markets, with SoftBank dropping 10% in Tokyo. Investors had sold on worries that data center construction could slow after Democrats swept the midterm elections. Texas Gov.-elect Gina Hinojosa, whose state holds 27% of planned U.S. data center capacity, said she wants to halt new projects until protections are in place. Strong October jobs data, with 165,000 positions added, offered some support.