Wall Street stocks in relief rally after heavy AI-related selloff

Wall Street’s technology-heavy sharemarkets rebounded on Friday after a sharp selloff linked to fears that Democratic election victories could bring tighter regulation of artificial intelligence. The recovery offered some relief, but markets remained unsettled and all three major US indexes were still heading for weekly losses.

The S&P 500 rose 0.71 per cent and the Nasdaq gained 1.4 per cent, while the Dow slipped 0.08 per cent. Semiconductor shares climbed 4.2 per cent, with Nvidia up 3 per cent and several other major chipmakers rising between 5.5 and 10 per cent. Investors were also weighing concerns over the cost and returns of AI infrastructure, a proposed Texas law on data centres, and stronger-than-expected US job growth; European and Asian markets fell.