U.S. stock indexes including the Nasdaq and the S&P 500 staged a tentative recovery heading into the close of the week, helping major benchmarks claw back some ground following a severe market rout driven by anxieties surrounding artificial intelligence and the technology sector.
The bounce-back follows a brutal stretch for Wall Street that wiped out trillions in market value and triggered the Nasdaq's worst downturn in 19 months. Chip manufacturers and prominent AI-linked equities—which bore the brunt of the recent sell-off—drove the recovery efforts as investors stepped in to buy the dip, though overall weekly losses for the major indexes still remained.
Market participants also weighed broader economic data alongside the tech-sector volatility. Economic reports showed the U.S. added 165,000 jobs during the period, providing additional context for traders as analysts debated whether the recent wave of selling was overdone.
