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November 6, 2026
AI stocks rebound after a major global sell-off, as stronger US employment figures and investor optimism support technology market recovery.
Artificial intelligence and technology stocks staged a recovery on Friday after a major market sell-off wiped trillions of dollars off global market valuations, exposing growing investor concerns over the sustainability of the AI boom, regulatory uncertainty and the financial returns of massive technology investments.
The technology-heavy Nasdaq Composite opened 1.23% higher, recovering some of the 5.5% losses recorded on Thursday. The downturn, which originated in the United States, spread across Asian and European markets, reflecting broader concerns about the future trajectory of technology-driven growth.
Political uncertainty emerged as a key factor behind the sell-off, following the Democrats’ sweeping victory in the US midterm elections. Several Democratic candidates had advocated tighter regulations on artificial intelligence and data centres, raising fears that increased government oversight could constrain industry expansion, delay investments and undermine projected corporate earnings. The results have consequently introduced a new dimension of political risk into an already volatile technology market.
Major technology stocks nevertheless staged a notable rebound. Nvidia, which suffered a decline of more than 9% on Thursday, recovering from hundreds of billions of dollars in lost market value, gained over 6%. SpaceX and Tesla also recorded gains of more than 7% and nearly 3%, respectively. US President Donald Trump reinforced market optimism by reiterating his support for AI development, defending what he described as “super intelligence” and warning against policies that could undermine its economic potential.
However, the recovery has done little to resolve deeper questions surrounding the AI industry’s financial sustainability. Investors remain increasingly concerned about whether the enormous capital commitments made by technology companies will translate into sufficient revenues and long-term profitability. This uncertainty suggests that market volatility extends beyond political developments to fundamental concerns about inflated expectations and the commercial viability of AI investments.
Meanwhile, stronger-than-expected US employment figures provided additional support to investor sentiment. American employers added 165,000 jobs, exceeding forecasts, while unemployment edged down to 4.1% from 4.2% in September. Professional and business services led employment growth with 70,000 new positions, followed by healthcare with 42,000, alongside gains in transportation, warehousing and manufacturing.
Premier Miton Chief Investment Officer Neil Birrell observed that the robust employment figures indicated that financial market concerns might not translate into an equally significant threat to the broader US economy.
Overall, the rebound reflects a temporary restoration of investor confidence rather than a resolution of the underlying uncertainties surrounding AI regulation, investment returns and technology-sector valuations.
