US technology shares recover as global equities remain under pressure

US equities recovered on Friday, with the S&P 500 gaining 0.30% and the Nasdaq advancing 1.30%, while the Dow Jones Industrial Average shed 237 points. The rebound followed the previous session’s sharp sell-off, which pushed the Nasdaq into correction territory, as concerns about tighter regulation of the artificial intelligence (AI) industry after the Democrats’ mid-term election victories weighed on technology and AI-related shares. Chipmakers led Friday’s recovery, with Nvidia rising 2.80%, Micron 5.10%, Advanced Micro Devices 11%, SpaceX 8.60%, Intel 7.70% and Lam Research 8.20%. Tesla gained 4.20%, while Alphabet and Meta each advanced 0.80%. Non-farm payrolls exceeded expectations and the unemployment rate edged lower. Despite Friday’s gains, the S&P 500 lost 3.20% for the week, the Dow fell 1.70% and the Nasdaq declined 5.50%.

US consumer sentiment improved in early November 2026, with the University of Michigan’s index rising to 51 points from 48 in October, above market expectations of to remain unchanged. Gains in expectations for personal finances and business conditions were driven primarily by independent voters. However, sentiment among consumers with the largest stock portfolios fell 5% following recent equity market volatility. Year-ahead inflation expectations eased to 4.30% from 4.70%, while the five-year outlook declined to 3.40% from 3.50%. Despite the improvement, overall sentiment remained 10% below its February level.

Crude oil rose to around US$91 a barrel on Friday, recovering earlier losses as investors weighed the risk of renewed US-Iran military escalation against the possibility of a diplomatic agreement. Reports of attacks on vessels in the Strait of Hormuz continued to raise supply concerns, while Iran’s reported nuclear proposal to Washington offered some prospect of negotiations. However, significant differences remain between the two countries. Crude oil fell nearly 12% over the week.

European equities weakened, with the Euro Stoxx 50 and Stoxx 600 both falling more than 1%, as concerns about potential US AI-industry regulation weighed on technology shares and broader market sentiment. Germany’s DAX 40 declined 2.10%, while France’s CAC 40 lost 0.80% and the UK’s FTSE 100 fell 1.10%. German industrial production increased 0.70% in September, while France’s trade deficit widened to €7.3 billion. The CAC 40 nevertheless gained 2.30% for the week, while the DAX and FTSE 100 lost 0.50% and 0.60%, respectively.

Asian markets also came under pressure. The Shanghai Composite fell 1.10%, although it gained 1.39% for the week, while Hong Kong’s Hang Seng Index declined 1.30%. Japan’s Nikkei 225 plunged 5.96%, taking its weekly decline beyond 9% and marking its weakest weekly performance since March 2020. Technology shares led the losses amid concerns about the outlook for AI infrastructure investment. Japanese nominal wages, meanwhile, recorded their strongest growth in nearly three decades, strengthening expectations of another Bank of Japan rate increase in December.

South African equities ended mostly lower on Friday. The JSE All Share Index declined 0.48% to 112 739.38, while the Top 40 fell 0.49%. Resources gained 1.12% and Metals and Mining advanced 2%, but Industrials lost 1.69% and Financials declined 0.60%. The rand weakened 0.41% against the US dollar to R16.56, but strengthened against the pound and euro, which fell 0.38% and 0.42% against the rand to R22.10 and R18.44, respectively.

At 22h48 SAST, Brent crude fell 0.20% to US$98.09 a barrel. At 23h02 SAST, gold declined 0.53% to US$4 065.71 an ounce, while silver gained 0.37% to US$51.94 and platinum advanced 0.70% to US$1 532.95 an ounce.