Tech stocks stage partial rebound while dollar gains after US jobs data

NEW YORK: Tech shares rose Friday (Nov 6), recovering a fraction of losses from the prior session's rout as the dollar rallied after better-than-expected US jobs data. Investors welcomed a partial recovery for the tech-heavy Nasdaq after its plunge on Thursday, which sent Asian and European markets tumbling. But the Nasdaq technically entered a correction after dropping more than 10 per cent over the past month, reflecting worries that sweeping victories by Democrats in this week's US elections would slow or derail the artificial intelligence data centre buildout. After slumping 5.5 per cent on Thursday, the tech-focused Nasdaq clawed back 1.1 per cent on Friday. "Markets could receive an additional boost if the Democrats soften their tone on AI," said a note from Jose Torres of Interactive Brokers.  In a CNN interview, Texas Governor-elect Gina Hiojasa, among the newly elected leaders that spotlighted the issue during the campaign, said communities need more say on if and where data centres get built. "We have always been a pro-business state in Texas, but what changes now with me as governor is it has to be a partnership that benefits Texans," she said. "It is not that I hate data centres; I hate the way they are taking advantage of Texas, and that stops when I'm governor." Investors were encouraged by a report showing that the US economy added 165,000 jobs last month, far more than analysts had expected.

While the US jobs data - including a dip in the unemployment rate to 4.1 per cent - reassured investors on the strength of the economy, it also cleared the way for the US Federal Reserve to raise interest rates.