Artificial intelligence shares powered back on Friday, driving a rally in the technology-heavy Nasdaq composite and lifting the broader S&P 500, as the AI stocks rebound helped stabilize a market that had spent much of the week searching for direction after the U.S. midterm elections. The recovery in AI-related names clawed back a portion of the sharp losses those stocks suffered earlier in the week, when a sell-off weighed heavily on the major indexes.
The S&P 500 added 23.13 points, or 0.3%, to close at 7,376.86. The Nasdaq composite outperformed with a gain of 264.43 points, or 1.1%, finishing at 24,579.42. The Dow Jones Industrial Average moved in the opposite direction, shedding 237.33 points, or 0.5%, to end at 51,285.73. The Russell 2000 rose 24.22 points, or 0.9%, to 2,754.11.
The split performance capped a whirlwind stretch during which investors tried to interpret what the midterm election results would mean for the economy. Wall Street’s relative steadiness on Friday halted what had been a worldwide tumble in equities earlier in the week. Treasury yields held firmer after a strong report on the U.S. job market, adding another layer for investors to weigh as they assessed the path ahead.
Weekly Scorecard: Losses Trimmed but Still Negative
Despite Friday’s gains, all four major indexes finished the week lower, a reminder of the pressure that built up over the preceding sessions. The S&P 500 lost 203.21 points, or 2.7%, for the week. The Dow fell 484.58 points, or 0.9%. The Nasdaq dropped 857.57 points, or 3.4%, and the Russell 2000 declined 57.74 points, or 2.1%.
The weekly declines were most pronounced in the Nasdaq, reflecting the outsized role that AI-linked stocks played in the pullback. The index’s Friday rebound reduced those losses but did not erase them, leaving the technology sector’s week in negative territory even as it showed signs of recovery.
Year-to-Date: Still in Positive Territory
For the year, the remains brighter. The S&P 500 is up 531.36 points, or 7.8%. The Dow has gained 3,222.44 points, or 6.7%. The Nasdaq is ahead by 1,337.43 points, or 5.8%, and the Russell 2000 has risen 272.20 points, or 11%.
Those year-to-date figures suggest that the recent turbulence, including this week’s sell-off and the partial recovery on Friday, has not derailed the broader upward trend that has carried the indexes through the year. The Russell 2000’s 11% advance stands out as the strongest percentage gain among the four benchmarks.
What Drove the Friday Session
Two forces shaped Friday’s trading. First, the rebound in AI stocks provided a lift to the Nasdaq and helped the S&P 500 finish modestly higher. Second, the strong jobs report kept Treasury yields firm, a factor that can influence borrowing costs and investor sentiment across asset classes. The combination produced a mixed but relatively calm session, a contrast to the worldwide selling that had marked earlier days of the week.
Investors are still working through the implications of the midterm elections for economic policy and growth, a process that is likely to continue shaping market behavior in the sessions ahead. For now, the Friday close offered a measure of stability, with the AI stocks rebound standing out as the day’s most visible positive development.
- S&P 500: +23.13 points, or +0.3%, to 7,376.86; week -203.21 points, or -2.7%; year +531.36 points, or +7.8%
- Dow Jones Industrial Average: -237.33 points, or -0.5%, to 51,285.73; week -484.58 points, or -0.9%; year +3,222.44 points, or +6.7%
- Nasdaq composite: +264.43 points, or +1.1%, to 24,579.42; week -857.57 points, or -3.4%; year +1,337.43 points, or +5.8%
- Russell 2000: +24.22 points, or +0.9%, to 2,754.11; week -57.74 points, or -2.1%; year +272.20 points, or +11%
