Shares of major artificial intelligence (AI) and technology companies climbed on Friday as global markets showed signs of recovery following a massive sell-off that erased trillions of dollars from stock market valuations.
The rebound came after a sharp decline on Thursday, when growing concerns over tighter artificial intelligence regulations in the United States and possible restrictions on data centre expansion triggered widespread selling across the technology sector.
According to market reports, the Nasdaq Composite plunged 5.5% on Thursday, marking its steepest one-day decline in 19 months. The Nasdaq 100 also suffered significant losses, with approximately $2.5 trillion wiped off its market value.
Major technology companies, including Nvidia and Advanced Micro Devices (AMD), experienced substantial declines. Semiconductor stocks were particularly affected as investors reconsidered the financial prospects of companies heavily involved in AI infrastructure.
However, technology shares began recovering on Friday. Nasdaq futures rose, while Nvidia and several other major chipmakers gained ground in pre-market trading, reflecting renewed investor interest after the previous day’s losses.
The market turmoil was partly driven by concerns that the Democratic Party’s strong performance in the US midterm elections could lead to stricter oversight of AI development and delays in the construction of large-scale data centres.
