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Nasdaq, S&P 500 and AI Stocks Rebound After Brutal Week
AI stocks rebounded Friday as investors bought beaten-down chipmakers after Thursday’s rout, with the Nasdaq recovering 1.1% and Nvidia rising about 3%.
- The Nasdaq Composite plunged 5.5% into correction territory on Thursday, marking its worst performance since the 2025 'Liberation Day' rout, after Democrats regained control of Congress in midterm elections on Tuesday.
- Fears that a 'Blue Wave' would disrupt the U.S. data center build-out triggered the sell-off, as prominent Democratic victors including Ohio Governor-elect Amy Acton and Michigan Senator-elect Abdul El-Sayed campaigned against such facilities.
- Investors had questioned whether massive AI spending justified high valuations, prompting Dong Baozhen, Chairman of Lingtong Shengtai, to state the sell-off proves AI stock prices were built on 'rosy illusions about the future.'
- Yorkville Ives & Co. partner Dan Ives argued the sell-off is overdone, comparing its magnitude to the 2020 and 2025 tech sell-offs, while other market participants reported 'client margin calls' and widespread complaints.
- Big Tech companies remain poised to allocate $3 trillion to $4 trillion toward AI capital expenditures over the next few years, ensuring the long-term industry build-out continues despite current market turbulence.
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How anti-AI trade after US midterm election results is reviving Indian, Chinese stocks
The unraveling of the AI trade after the US midterm elections is forcing investors to rethink their Asia playbook, reviving demand for out-of-favor Chinese and Indian stocks as well as companies poised to benefit from easing inflation and trade tensions.
·New Delhi, India
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·Amsterdam, Netherlands (Kingdom of the)
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As AI stocks correct, Goldman Sachs sees opportunity in healthcare and non-AI equities
US midterm elections could shift market dynamics, prompting investors to adopt more defensive positions in their portfolios. Healthcare is anticipated to benefit from advancements in AI as it sees potential growth. Many traditional defensive sectors, however, appear less attractive due to elevated valuations. Goldman Sachs emphasizes the importance of focusing on companies with strong fundamentals for investment.
·India
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Total News Sources74
Leaning Left9Leaning Right13Center23Last UpdatedBias Distribution51% Center
Bias Distribution
- 51% of the sources are Center
51% Center
L 20%
C 51%
R 29%
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