Closing Bell: Tech Rebounds as Strong Jobs Report Lifts Rate-Hike Odds

U.S. stocks rebounded Friday, led by technology and semiconductor shares.

The S&P 500 (SPX) gained 0.31%, while Nasdaq-100 (NDX) climbed 1.35%. The Russell 2000 (RUT) rose 0.89%, while the Dow Jones Industrial Average ($DJI) slipped 0.46%. Investors returned to megacap growth names following Thursday’s sharp selloff, even as a surprisingly strong October jobs report sent Treasury yields and Federal Reserve rate-hike expectations higher.

Semiconductors led the countertrend technology rally, with the PHLX Semiconductor Sector Index (SOX) rebounding 4.2% Friday after suffering its worst session in six years Thursday. Within the S&P 500, information technology shares gained 1.26% Friday, communication services rose 0.52%, and consumer discretionary rose fractionally. Defensive and rate-sensitive groups lagged, with consumer staples down 1.21%, real estate off 0.64% and financials slipping 0.68%.

The Labor Department reported 165,000 jobs added in October, more than double the roughly 65,000 expected, while the unemployment rate declined to 4.1% from 4.2%. August and September payrolls were also revised higher by a combined 84,000 jobs, reinforcing evidence of labor-market resilience. Treasury yields rose in response, with the 10-year up roughly 3 basis points to 4.859%.

The U.S. Dollar Index gained roughly 0.7% to 102.287, consistent with renewed demand for U.S. assets following Thursday’s global risk-off sentiment. WTI crude remained firm above $90 per barrel, while volatility eased but remained elevated. The VIX fell to 25.64, with shorter-dated protection priced above longer-dated volatility suggesting that investors are still paying a premium to hedge near-term risk despite Friday’s rebound.

Three things to watch from Friday’s market:

Tesla Shifts Focus Away from Cybertruck

Tesla (TSLA) shares rose 4.3% Friday after CEO Elon Musk said the company plans to wind down Cybertruck production in mid-2027 at its Texas Gigafactory. Tesla intends to redirect resources toward the Cybercab robotaxi and its broader autonomous-driving platform as the company increasingly emphasizes autonomy over traditional vehicle expansion. See Lloyd: AI Has 'Win-Win' Scenario Post-Midterms; SPCX, TSLA Merger Still Possible

Microsoft Winds Down Oracle AI Capacity Deal

Microsoft (MSFT) shares fell 1% after it said it is winding down and not renewing its 2023 agreement to rent AI cloud-computing capacity from Oracle (ORCL). The move adds another wrinkle to investor scrutiny of AI infrastructure spending as hyperscalers reassess how much outside capacity they need versus internally developed data-center resources. See The Big 3: APP, AMZN, MSFT | Trading 360

Atlassian Plunges on Slower Data Center Growth Outlook

Atlassian (TEAM) shares plunged more than 15% after the company said it expects data center revenue growth to decelerate. The outlook raised concerns about the pace of migration and growth across parts of Atlassian’s business, adding to broader pressure on software stocks amid heightened sensitivity to slowing enterprise spending and AI-related disruption. See Friday's First Moves: ABNB Earnings Surge, TEAM & LYFT Lower

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.

Schwab Network is brought to you by Charles Schwab Media Productions Company (“CSMPC”). CSMPC is a subsidiary of The Charles Schwab Corporation and is not a financial advisor, registered investment advisor, broker-dealer, futures commission merchant, or forex dealer member.

Charles Schwab Media Productions Company and all third parties mentioned are separate and unaffiliated, and are not responsible for one another's policies, services or opinions.

Data contained herein is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. All events and times listed are subject to change without notice.