US Tech Shares Bounce Back After Record Two-Day Market Swing

US technology and semiconductor shares staged a sharp recovery on Friday, November 6, 2026, bouncing back from a historic sellout a day earlier that wiped out an estimated $2.5 trillion in market value. Major chipmakers including Nvidia, AMD, Intel and Micron Technology recovered between 5% and 11% on Friday after suffering steep losses. The dramatic market swings followed the US midterm election results, which saw Democrats sweep the elections. Investors grew anxious that voter opposition to data centre expansion could translate into regulatory limits on chipmakers and data centre suppliers. In San Jose, California, residents like Justin Brown raised concerns about the speed of new data centre plans, pointing to high water and electricity costs and the need for public debate. Dozens of local measures across 13 states also blocked or restricted future development. Thursday's rout pushed the Nasdaq Composite down 5.52% to 24,315, sending it into correction territory after falling over 10% from its October peak. The S&P 500 tumbled 4.36% to 7,353.73, and the Dow Jones Industrial Average dropped 1,833.06 points. On Friday, the S&P 500 rose 0.31% to 7,376.86, while the Dow fell 237.33 points to 51,285.73 due to weakness in cyclical and healthcare shares. The Philadelphia Semiconductor Index climbed 4.2%, and companies like Tesla, SpaceX, Aehr Test Systems, Camtek and Cohu also posted gains. Meanwhile, US nonfarm payrolls increased by a stronger-than-expected 165,000, and annual wage growth came in at 3.1%. The benchmark 10-year Treasury yield rose to 4.86%.

Expert Views

Jefferies equity strategist Jane Gibbons described the Thursday decline as a reaction to concerns over AI spending, policy and inflation, rather than a fundamental reset for the sector. Traders at Goldman Sachs Group Inc., including Lee Coppersmith, noted that the extreme market panic historically signals potential for a strong medium-term rebound as forced selling runs its course.

Context

Artificial intelligence relies heavily on massive data centres that consume vast amounts of electricity and water, making local zoning rules and environmental regulations a central flashpoint for the industry's physical expansion. When election results empower local leaders who promise to slow down or restrict these builds, it creates direct financial uncertainty for semiconductor companies whose long-term growth depends on building more infrastructure.