Tech stocks stage partial rebound while dollar gains after US jobs data
Traders work on the floor of the New York Stock Exchange (NYSE) on Nov 6, 2026 in New York City. (Photo: AFP/Spencer Platt)
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NEW YORK: Tech shares rose Friday (Nov 6), recovering a fraction of losses from the prior session’s rout as the dollar rallied after better than expected US jobs data.
Investors welcomed a partial recovery for the tech-heavy Nasdaq after its plunge on Thursday, which sent Asian and European markets tumbling.
But the Nasdaq technically entered a correction after dropping more than 10 per cent over the past month, reflecting worries that sweeping victories by Democrats in this week’s US elections would slow or derail the artificial intelligence data centre buildout.
After slumping 5.5 per cent on Thursday, the tech-focused Nasdaq clawed back 1.1 per cent on Friday.
“Markets could receive an additional boost if the Democrats soften their tone on AI,” said a note from Jose Torres of Interactive Brokers.
In a CNN interview, Texas Governor-elect Gina Hiojasa, among the newly elected leaders that spotlighted the issue during the campaign, said communities need more say on if and where data centres get built.
“We have always been a pro-business state in Texas, but what changes now with me as governor is it has to be a partnership that benefits Texans,” she said. “It is not that I hate data centres; I hate the way they are taking advantage of Texas, and that stops when I’m governor.”
Investors were encouraged by a report showing that the US economy added 165,000 jobs last month, far more than analysts had expected.
While the US jobs data – including a dip in the unemployment rate to 4.1 per cent – reassured investors on the strength of the economy, it also cleared the way for the US Federal Reserve to raise interest rates.
Investors widely expect the Fed to raise interest rates by a quarter percentage point at its next meeting in December to bring down stubborn inflation.
Those expectations were also reflected in the foreign exchange market, with the dollar rising against the euro and other major currencies.
“The prospect of a relatively more aggressive Federal Reserve has moved back into focus, making it increasingly difficult for the euro to recover ground consistently,” said a note from Julian Pineda, a market analyst at Forex.com.
Rising interest rates would further complicate the calculus for tech firms that have propelled markets worldwide over a four-year bull run.
“Big worries are colliding – the build-out of data centres looks set to slow, which risks shredding the spending spree underpinning the boom, right at the time that investors have become super nervous about returns on this massive investment,” said Susannah Streeter, chief investment strategist at Wealth Club.
The Tokyo and Seoul stock markets closed out their weeks with losses of six percent following the Nasdaq’s 5.5 per cent collapse on Thursday, its worst showing since April last year when Trump unveiled his wide-ranging global tariffs.
On Seoul’s Kospi stocks index, chip giant SK hynix slumped 10 per cent and its rival Samsung lost 6.4 per cent.
The London, Paris and Frankfurt stock markets finished down, despite featuring few technology firms.
Source: AFP/fs
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