US Stocks Rebound on Friday as Nasdaq Climbs After Worst Day Since April 2025
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US stocks bounced back on Friday, November 6, 2026, one day after their worst sell-off since April 2025. The Nasdaq rose about 1.7% in Friday trading, the S&P 500 gained about 1%, and the Dow was roughly flat. Chip stocks led the recovery, with Nvidia up about 6.5%, as bargain hunters stepped in and a much stronger than expected jobs report steadied nerves.
What happened
Thursday had been brutal. The S&P 500 fell 4.36%, its worst single day since April 2025. The Nasdaq Composite dropped 5.52% and closed in correction territory, more than 10% below its record close, and the Dow lost 1,833.06 points, or 3.4%, to 51,523.06. Chip stocks were hit hardest, with the Philadelphia Semiconductor Index plunging 12.25%. We covered that sell-off in our post on the S&P 500 plunging 4.3% in its worst day since April 2025 as the Nasdaq entered correction.
Friday brought a change of mood. By mid-afternoon in London, the Nasdaq was about 1.7% higher, the S&P 500 was about 1% higher, and the Dow was up about 0.1%, according to Sharecast News. Associated Press coverage put the Nasdaq gain at about 1.8% and the S&P 500 at about 1%, with the Dow slightly lower, so the exact figures moved during the session. The direction was the same in every report: technology and chip stocks recovered part of Thursday’s losses.
The trigger was the October jobs report. We covered the data in our post on the US jobs report beating forecasts as employers added 165,000 roles in October. Employers added 165,000 jobs, far above the 65,000 economists had expected, and the unemployment rate slipped to 4.1% from 4.2%. Pay also grew faster than expected, with average hourly earnings up 0.4% in the month to $38.00, and 3.1% higher than a year earlier.
Nvidia was the clearest sign of the turnaround. The chipmaker climbed about 6.5% on Friday after losing about 9% on Thursday, as investors reassessed worries about the cost of artificial intelligence infrastructure and the outlook for data center spending. Moderna also surged after raising its full-year revenue forecast on stronger third quarter sales and a return to profit.
Not everything pointed the same way. The strong jobs report pushed Treasury yields higher, with the 10-year yield at about 4.86% to 4.88%, and traders raised the odds of a Federal Reserve rate hike in December to above 76%, according to the CME FedWatch Tool. Higher yields usually make growth stocks less attractive, so the rebound happened even as rate hike bets rose. Consumer sentiment also improved, with the University of Michigan index rising to 51.0 in November from 48.0 in October, which added to the calmer mood.
Why it matters for beginners
A rebound after a sharp fall is normal, and it does not by itself mean the trouble is over. On Thursday, investors sold because they worried that the Democrats’ midterm sweep could slow data center building and that heavy artificial intelligence spending may not pay off quickly. On Friday, some of those same investors decided prices had fallen far enough to buy again. That is what bargain hunting means: buying after a drop, in the hope that the fall was overdone.
The jobs report matters here because it gave buyers a reason to step back in. Strong hiring and low unemployment suggest the economy is still resilient, even with higher energy costs and interest rates. At the same time, strong hiring keeps the Federal Reserve cautious, because it can support spending and prices. That tension is why yields rose even as stocks recovered.
For beginners, the useful lesson is about time horizon. One day of selling, and one day of buying, are both single days. A broad market fall pulls a whole basket of stocks down, and a broad rise lifts it, so neither day tells you what will happen next week. If you want a refresher on how to think about market falls, see our guide on what risk in investing means in simple terms.
What to watch next
Watch whether Friday’s rebound holds into next week, or whether selling returns. The next big test is the October consumer inflation data, due on Tuesday, November 10, which will shape the Federal Reserve’s decision at its December 8 to 9 meeting. Watch what Democratic leaders in Congress say about data center rules and technology regulation, and watch chip companies for updates on demand, because those were the drivers of Thursday’s fall. Also watch Treasury yields: if they keep climbing on strong data, growth stocks could come under pressure again.
FAQ
What is a stock market correction?
A correction is a fall of at least 10% in an index from its recent peak. The Nasdaq entered correction territory on Thursday, November 5, after falling more than 10% below its record close. A correction is a normal part of markets, and it is not the same as a bear market, which is usually a fall of 20% or more.
What does bargain hunting mean?
It means investors buy stocks after a sharp fall, because they think prices have dropped too far. On Friday, bargain hunters stepped into technology and chip stocks that had fallen hardest on Thursday, which helped lift the Nasdaq.
Why did stocks rise after a strong jobs report if strong jobs can mean higher rates?
Strong hiring is good news for the economy, so it gave buyers confidence. But it also raised the odds of a December rate hike, which is why Treasury yields rose at the same time. Markets can hold both ideas at once: a healthy economy is positive for companies, while higher rates are a headwind for stock prices.
Does one good day mean the sell-off is over?
No. A single rebound does not confirm a bottom. The worries behind Thursday’s fall, about data center spending, artificial intelligence costs, and possible new regulation, have not gone away. The next inflation data and the Fed’s December decision will matter more than one day’s move.
Sources
Sharecast News via London South East, “US open: Nasdaq leads the recovery after Thursday’s selloff”, November 6, 2026, https://www.lse.co.uk/news/us-open-nasdaq-leads-the-recovery-after-thursdays-selloff-psh6ptudz1s9hdw.html
Associated Press via Mi Bolsillo, “AI stocks rebound after brutal global sell-off as Nvidia surges 6.5% and Wall Street recovers”, November 6, 2026, https://www.mibolsillo.co/ai-stocks-rebound-after-brutal-global-sell-off-as-nvidia-surges-6.5-and-wall-street-recovers-t202611060009.html
This article is for general information and education only. It is not legal or financial advice.
