After a rough day on Wall Street, investors came back looking for bargains. Thursday’s plunge rattled markets and wiped out a huge amount of value from the country’s biggest companies.
Tech stocks tried to bounce back Friday, Nov. 6, 2026, after the Nasdaq suffered its steepest selloff in 19 months a day earlier.
How are tech stocks doing Friday?
The Nasdaq Composite rose about 400 points, or 1.7%, in Friday morning trading. Even with the gain, the index heavily weighted toward technology companies remained on track to finish the week lower. The rebound offered some relief after a turbulent stretch for investors.
Most of the group known as the Magnificent Seven, which lost about $1 trillion in value on Thursday, were moving higher. Alphabet, Amazon, Meta, Nvidia and Tesla were up, while Microsoft and Apple remained down. Those seven companies have driven much of the market’s gains in recent years.
Why did tech stocks fall?
Thursday’s drop was the Nasdaq’s worst single day since the tariff shock of April 2025. The index fell into a correction, meaning a decline of at least 10% from its recent high, according to reports. The April 2025 drop came after the president announced sweeping tariffs.
Analysts widely linked the selloff to concerns that the Democratic wave in the midterm elections could slow the pace of data center construction across the country. The concern centers on how lawmakers might approach the industry’s rapid growth.
Data centers power artificial intelligence, and spending on them has been a major driver of tech stocks and of the broader economy this year. Spending on equipment, much of it tied to AI, grew at its fastest pace since 2020 in the third quarter.
Some investors worry a Democratic Congress could pursue tighter rules on the energy and water those facilities use, or scrutinize the industry more closely. Data centers use large amounts of electricity, and their growth has sparked debate in many communities.
What did Trump say about the market?
President Donald Trump blamed the selloff on Democrats’ victory. In a social media post Thursday, he called the decline a sad thing to watch, said it took a lot of work to reach record levels and told Americans their 401(k) retirement accounts had dropped as a result. The post reflected his frequent focus on stock market performance as a measure of the economy.
Other analysts point to factors beyond the election, including high valuations for tech companies, rising inflation and uncertainty over the war with Iran.
What do tech stocks mean for everyday investors?
Because a few large tech companies make up a big share of major stock indexes, swings in tech stocks can quickly affect retirement accounts and index funds held by millions of Americans.
Financial advisers often urge investors saving for the long run to avoid reacting to short swings and to keep a diversified mix of investments. Selling during a downturn can lock in losses.
Market drops of this size are not unusual, and the Nasdaq has recovered from past selloffs, though there is no guarantee of when.
What comes next for tech stocks?
Investors will watch for clues about how the new Congress approaches technology, energy and spending when it takes office in January. Democratic leaders have said they will focus on affordability when the new Congress begins.
Upcoming earnings reports, inflation data and any moves by the Federal Reserve could also shape whether the rebound holds.
For now, Friday’s bounce suggests some investors see the drop in tech stocks as a buying opportunity rather than the start of a longer slide. Whether that bet pays off will depend on the weeks ahead.
