Markets
Nasdaq Rebound Narrows to 1.3% by Late Morning as Chip Stocks Lead Bounce and Yields Climb
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Technology shares recovered part of Thursday's rout, but early gains faded as stronger jobs data lifted Treasury yields and December rate-hike bets.
By Emmanuel Cruz ·
Wall Street opened Friday with a sharp bounce in technology shares, then gave back part of it through the morning as a strong jobs report pushed Treasury yields higher and revived bets on a Federal Reserve rate increase.
The rebound followed a punishing Thursday for growth stocks. CoinDesk's market blog reported that Nasdaq-100 futures were up more than 1.4% at 6:59 a.m. ET, and by 7:56 a.m. ET they were up 1.5% while Dow futures were down 1% [1]. That split foreshadowed the pattern that held after the opening bell, with the technology-heavy index recovering faster than the blue-chip average.
The October employment report, released at 8:30 a.m. ET, did not derail the early bounce. Payrolls rose 165,000 against a forecast of 65,000, and the 10-year Treasury yield rose 6.4 basis points to 4.894% in the minutes after the release, CoinDesk said [1]. By 9:26 a.m. ET the Nasdaq was up 2%, led by semiconductors, with the iShares Semiconductor ETF up 6.5% and the S&P 500 up 1% [1].
The advance then lost some momentum. By 11:23 a.m. ET, CoinDesk reported, the Nasdaq had narrowed its opening gain of about 2% to 1.3% [1]. Reuters, in a report published Friday morning, put the Nasdaq up 1.7% and the S&P 500 up 0.6%, while the Dow was down 0.6%, so the index that had been pulling ahead of the others earlier in the session was still the clear leader, though by less than at the open [2]. Reuters did not attribute the Dow's decline to a specific cause, and the sources reviewed for this story did not either.
Rates were the most visible cross-current. Reuters showed the 10-year yield at 4.87% and the 30-year at 5.27%, with the 2-year at 4.52%, after yields spiked on the data and then partly pulled back [2]. The dollar index rose 0.7% to 102.22 [2]. Market bets on a December Fed hike rose to 78% from 70%, according to Reuters [2], while CoinDesk put the probability at 77% as of 9:53 a.m. ET, up from about 70% before the report and down from roughly 95% weeks earlier [1].
That backdrop explains why the session looked more cautious than the headline gains suggest. Higher yields raise the discount rate applied to future earnings, which tends to matter most for growth-oriented companies, and the technology sector has just absorbed a hard drawdown. CoinDesk's Daybook described Thursday as the Nasdaq's worst session since April 2025, with the decline amplified by leverage, citing GSR's Carlos Guzman, who called it "a pullback in risk appetite amplified by leverage" [3]. A bounce that fades into the afternoon would suggest buyers are still cautious, while a session that holds its gains would point to stabilization, though one day rarely settles the question.
Investors will be watching several things into the close. One is whether semiconductor shares, which led the rebound, can hold their gains after such a large swing in both directions. Another is the path of the 10-year yield, which sits just below the 4.9% area reached in the minutes after the jobs data. A third is how the market prices the Fed's December meeting as the next inflation reading approaches, since each shift in rate-hike odds has fed directly into equity valuations this week.
For now, investors are weighing a strong economic report against higher borrowing costs, and the balance between the two has shifted through the session.
Sources:
[1] CoinDesk, "Live updates: Bitcoin holds in narrow range, stocks bounce after strong October jobs report", November 6, 2026. https://www.coindesk.com/tech/2026/11/06/live-updates-nasdaq-100-futures-rally-points-to-stock-market-respite
[2] Reuters, "Strong October jobs report sends yields higher", November 6, 2026. https://finance.yahoo.com/economy/policy/articles/strong-october-jobs-report-sends-134858909.html
[3] CoinDesk, "Over $1 billion in bullish bets liquidated while ETFs suggest no help in spot market: Crypto Daily", November 6, 2026. https://www.coindesk.com/daybook-us/2026/11/06/over-usd1-billion-in-bullish-bets-liquidated-while-etf-flows-suggest-no-help-in-spot-market
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.