Shares of US chipmakers recovered part of their losses in Nov. 6 trading. By 20:21 Kazakhstan time, Nvidia had gained 5.6%, while the Nasdaq Composite rose 1.73% after its sharpest one-day drop in 19 months. The S&P 500 climbed 1%, and the Dow Jones stayed roughly at its previous close, Reuters reported. This was reported by Qazaqyia.kz citing Kursiv Media.
The previous sell-off
A day earlier, the Nasdaq lost 5.52%, while the semiconductor producers' index fell more than 12%. The sell-off intensified after the Democrats won the US midterm elections. Investors fear that new restrictions on data center construction will slow the development of artificial intelligence infrastructure. On Friday, the sector index added 4.6%, while shares of AMD, Intel and Micron Technology rose by 3–10.5%.
Strategist's comment
"We believe Thursday's sell-off was a reaction to a combination of factors — concerns about AI spending, politics and inflation. Fundamentally, nothing has changed," Jane Gibbons, equity market strategist at Jefferies, told Reuters.
US labor market data
In October, the US added 165,000 nonfarm payroll jobs against a forecast of 65,000. Unemployment fell to 4.1%. After the report was released, traders raised the estimated probability of a Federal Reserve rate hike in December from 70% to 78%, Reuters writes.
What happened earlier
Earlier, Kursiv wrote that during the Oct. 30 sell-off, Nvidia shares fell 4%, AMD — 11%, and Intel — 29%. Even then, investors were concerned about the scale of technology companies' AI spending. What the new Nasdaq drop means for Kazakhstanis who have invested in US stocks can be read in more detail in this material.
Meanwhile, in Kazakhstan, Freedom is building a data center in the city of Alatau together with Nvidia. It is planned to be launched in the second quarter of 2027.