U.S. stocks close mixed as chip rebound

U.S. stocks closed mixed on Friday as chip stocks rebounded from Thursday's historic rout.

The Dow Jones Industrial Average fell 237.33 points, or 0.46 percent, to 51,285.73. The S and P 500 added 23.13 points, or 0.31 percent, to 7,376.86. The Nasdaq Composite Index increased by 264.42 points, or 1.09 percent, to 24,579.42. The early gains faded throughout the afternoon, leaving the major indexes well below their session highs.

Seven of the 11 primary S and P 500 sectors ended in the red. Consumer staples and financials led the laggards, falling 1.21 percent and 0.68 percent, respectively. Technology and communication services led the gainers, rising 1.26 percent and 0.51 percent, respectively.

Concerns about a slowdown in data center construction and in AI spending were at the center of Thursday's deep sell-off, which erased 3 trillion U.S. dollars in market value. Technology led the rebound on Friday, with semiconductor shares recovering part of Thursday's steep losses, while defensive sectors lagged as rising yields weighed on rate-sensitive stocks.

Nvidia climbed 2.78 percent, clawing back part of Thursday's 7.3-percent plunge, while Advanced Micro Devices rose over 11 percent. Airbnb shares jumped 11.67 percent after the company raised its full-year revenue growth forecast.

Investors also weighed the jobs report and the outlook for Federal Reserve policy. Employers added 165,000 jobs in October, nearly triple the 59,000 economists had expected, while the unemployment rate edged down to 4.1 percent from 4.2 percent in September, the U.S. Labor Department reported. Average hourly earnings rose 3.1 percent from a year earlier.

Meanwhile, the University of Michigan's preliminary consumer sentiment index rose to 51 in November from 48 in October, beating expectations, while one-year inflation expectations eased to 4.3 percent from 4.7 percent. Traders now see about a 78-percent chance of a quarter-point rate hike at the Fed's December meeting, up from 70 percent before the report, according to CME FedWatch.

The U.S. dollar increased in late trading on Friday.

The dollar index, which measures the greenback against six major peers, added 0.74 percent to 102.298 at 15:00 (2000 GMT).

In late New York trading, the euro fell to 1.1140 dollars from 1.1225 dollars in the previous session, and the British pound dropped to 1.3351 dollars from 1.3459 U.S. dollars in the previous session.

The U.S. dollar bought 158.49 Japanese yen, higher than 157.85 Japanese yen of the previous session. The U.S. dollar advanced to 0.8206 Swiss francs from 0.8165 Swiss francs, and it increased to 1.4132 Canadian dollars from 1.3998 Canadian dollars. The U.S. dollar was up to 9.8988 Swedish Kronor from 9.7948 Swedish Kronor.