AI stocks bounce back after $2.5 trillion wipeout, but questions remain
An AI-driven stock sell-off that wiped roughly $2.5 trillion in market value off Wall Street eased on Friday, but only after hitting Asian and European markets hard. US tech stocks staged a modest rebound, with the Nasdaq and S&P 500 rising 1.1 percent and 0.3 percent, respectively. The Dow, meanwhile, fell roughly 0.5 percent. Markets often bounce back slightly after a sell-off as some investors step in to buy stocks at discounted prices. Despite bouncing back on Friday, the S&P 500 still finished the week down roughly 2.7 percent, its worst week since April 2025, when President Donald Trump’s unveiling of tariffs rocked global markets. Some of Thursday’s hardest-hit US stocks — namely, those tied to the AI trade — rebounded, with Nvidia rising 2.8 percent and SpaceX gaining 8.6 percent.…