AI and tech stocks recover slightly after huge market sell-off

Shares in artificial intelligence and technology companies have regained some ground following a massive sell-off that erased trillions of dollars in market value worldwide.

The tech-focused Nasdaq index closed higher after a rout that started in the United States on Thursday before spreading to Asian and European markets on Friday.

The sell-off was partly driven by investor concern that a Democrat win in the midterm elections could slow the pace of artificial intelligence development.

However, stronger-than-expected US employment data released Friday morning, showing 165,000 jobs added to the economy, contributed to a mixed outlook for American markets.

On Thursday, companies tied closely to AI development, especially chip and semiconductor manufacturers, suffered heavy losses.

The Nasdaq Composite rose 1.1% on Friday, recovering part of a previous 5.5% drop. The S&P 500, which tracks the largest publicly traded US firms, ended the day up 0.3%, while the Dow Jones Industrial Average slipped 0.4% after trading flat for much of the session.

Firms that had lost hundreds of billions of dollars in value, including Nvidia, SpaceX and Tesla, saw some recovery in their share prices on Friday.