Tech stocks in the U.S. steadied Friday after suffering one of their worst routs in years, as investors weighed the prospect of an AI investment slowdown resulting from Democratic midterm victories against the sector’s long-term growth potential.
\n\nThe tech-focused Nasdaq 100 closed up 1.1% after plunging 6.3% on Thursday, its worst single-day performance since the Covid-19 pandemic.
\n\nThe broader S&P 500 finished 0.3% higher, after tanking 4.4% Thursday, a drop that wiped out $2.8 trillion worth of wealth on paper.
\n\nA strong October jobs report Friday morning increased the odds that the Federal Reserve will raise interest rates at its next policy meeting in December. The prospect of higher borrowing costs helped to push stocks down from their highs earlier in the day.
\n\nInvestors continue to digest the results of Tuesday’s midterm elections, in which a crop of Democratic candidates were elected to office who had pledged to rein in AI and data centers. They include Gov.-elect Gina Hinojosa of Texas, a state that is among the largest data center markets in the country.
\n\nThe AI boom is responsible for an ever-increasing share of U.S. stock market gains and economic growth, so any threat to the narrative of demand-fueled growth…
Original source: https://www.nbcnews.com/