October payrolls top forecasts at 165,000 as unemployment edges down to 4.1%
Shares in artificial intelligence and technology firms started to climb on Friday after an enormous sell-off on Thursday wiped trillions of dollars off stock values. The rout began in the United States before spilling over to Asian and European markets into Friday.
The tech-heavy Nasdaq Composite opened up 1.23% and continued to gain in early trading, reversing some of its 5.5% fall from Thursday. The S&P 500 also opened slightly higher, while the Dow Jones Industrial Average opened a little down, leaving US markets with a mixed picture on Friday morning. The St. Louis Fed’s FRED database showed the Nasdaq Composite at 24,315.0 as of Nov. 6, with the Dow Jones Industrial Average at 51,523.06.
Firms that took heavy losses on Thursday began bouncing back in early trading. Nvidia, which shed hundreds of billions of dollars in market value on Thursday after its shares slid more than 9%, began Friday trading up more than 6%. SpaceX and Tesla shares, which were also hammered on Thursday, saw more mixed gains, rising more than 7% and nearly 3% respectively.
The market swings followed the sweeping Democratic victory in the midterm elections. A number of Democratic candidates campaigned for new rules and regulations for artificial intelligence and data centers, and the party won control of both houses of Congress as well as key contests in states that have been part of the AI data-center race.
Investors had been selling off tech shares in part because of concerns that the Democratic victory would mean slower AI development, according to BBC News. There have also been concerns over whether the enormous amounts of money being spent on AI will pay off.
President Donald Trump on Friday reiterated his support for what he calls “super intelligence,” saying only “foolish leadership” would “say no to the riches they bring.”
The latest US employment figures added to the mixed picture for American markets on Friday morning. The numbers were better than expected: US employers added 165,000 new jobs in October, well above the average monthly increase and more than double what analysts had expected.
The unemployment rate, which counts people who are out of work but actively looking for a job, eased slightly to 4.1% from 4.2% in September. The Bureau of Labor Statistics said the unemployment rate has remained in the narrow range of 4.1% to 4.3% since March.
The increase in jobs was led by the professional and business services sector, which added 70,000 jobs. Healthcare added 42,000 jobs, and jobs were also added in transportation and warehousing as well as manufacturing.
Neil Birrell, chief investment officer at investment firm Premier Miton, said the jobs figures may feel like second billing to the market movements but were still important. “The US economy is running hard which may mean the risks the markets are worrying about at the moment are not such a risk to the real economy as is being feared,” he said.