Nasdaq futures rebounded on Friday as some investors bought the dip in chip stocks following a punishing sell-off that sent the Nasdaq into correction territory.

Nasdaq-100 futures bounced by 1.6%, S&P 500 futures rose 0.2%, while Dow Jones Industrial Average futures remained under pressure, down by 478 points, or 0.9%.

A strong October jobs report sent Treasury yields higher, which held back the gains in equity futures.

Worries of a potential slowdown in data center construction following big Democratic wins in the House and Senate and key state governorships hit U.S. markets hard on Thursday.

The heavy selling Thursday sent the three major stock averages to their worst one-day losses since April 2025. The Nasdaq Composite tumbled 5.5%, closing more than 10% below its most recent high and putting it in what Wall Street regards as a correction. The broad-market S&P 500 lost 4.4%, while the Dow fell more than 1,800 points, or 3.4%.

All 11 sectors in the S&P 500 closed lower, but shares of companies tied to the AI build-out led the decline.

In early trading Friday, shares of Micron Technology were up 9% following a 17% decline on Thursday. Nvidia was up 3% after a 9% rout the day before.

“The scale of the falls in some of the market’s biggest names has been striking. But it also highlights the concentration risk that has built up in U.S. equity markets,” Stuart Clark, portfolio manager at Quilter, said by email.

“With a relatively small number of technology and semiconductor stocks now carrying so much weight, weakness in those names quickly translates into sizeable falls for the Nasdaq and S&P 500.”

The “Magnificent Seven” stocks shed $1 trillion in total market capitalization on Thursday alone.

Top Democrats have been calling to curb the data center buildout since the Democrats’ big election win. Governor-Elect Gina Hinojosa of Texas, a key data center hub in the country, said in a CNN interview Thursday evening, “We will have laws to protect Texans, and we need to stop what we are doing with data centers until we have those protections.”

Investors reacted to the latest nonfarm payrolls report, which came in much better than expected at an increase of 165,000 in October. That was well above the 59,000 that economists polled by Dow Jones had anticipated. The unemployment rate also moved to 4.1%. Economists had expected it to be at 4.2%.

All three major averages are poised for losses on the week, even after Wednesday’s big rally in the wake of the election. The Nasdaq is off by some 4.4% and the S&P 500 by almost 3% through Thursday. The 30-stock Dow is the outperformer, lower by just 0.5% week to date.

Looking at the history of Nasdaq corrections shows tech stocks often find their footing over the next three-to-six months, but trading can remain rocky in the near term.