Nasdaq rebounds but posts fourth straight weekly decline

This transcript was produced with AI technology that converts speech to text. The text is not always reviewed or edited by Reuters journalists and some errors may occur.

Tech stocks bounced back a day after their worst drubbing in more than a year, with the Nasdaq on Friday gaining more than one percent. But the index posted its fourth consecutive weekly decline as investors sifted for clues about what comes next in the AI trade. Wall Street's other main indexes ended mixed, with the Dow dropping about half a percent while the S&P 500 gained roughly one-third of a percent. Meanwhile, a stronger than expected monthly jobs report helped boost investor sentiment. Gaurav Mallik is chief investment officer at Modera Wealth Management.

Speaker 2:

'I think that the main thing to keep in mind is that we saw some overreaction yesterday, which was to the AI story in aggregate and concerns about data center. We're getting into a phase where the labor report is very strong. That gives people some assurance of the path the Fed is going to take. That balance is providing some comfort to markets. This is not to say by any means that this is the end of the downturn in AI or a new rally to start, but I think it's time for people to take a step back. And today's news gives some clarity on the path forward.'

Speaker 1:

The technology gains were broad, with chip stocks AMD soaring 11% and Sandisk rebounding almost 4%. Hyperscalers Meta and Alphabet also closed slightly higher. Elon Musk's Tesla also bounced back, as did SpaceX, which climbed more than 8%. Among other stock moves, software firm Atlassian dropped 16% after reporting first-quarter results. And shares of Airbnb climbed 12% after the vacation rental platform raised its full-year 2026 revenue growth forecast. [This transcript was produced with AI technology that converts speech to text. The text is not reviewed or edited by Reuters journalists and some errors may occur.]