Global stock markets ended mixed on Friday, recovering some ground after a Thursday sell-off sparked by growing fears that a technology bubble will burst and speculation over the US Federal Reserve's next move.

Investors are increasingly worried that the red-hot tech sector is overvalued and might crash, similar to what happened during the dotcom bubble in the late 1990s and early 2000s, which wiped out billions and put companies out of business.

"The honeymoon phase where 'AI innovation' justified any budget is over, replaced by brutal questions about cost per query, accuracy rates and measurable business outcomes," said Manisha Khanna, a senior product manager at US software firm SAS.

Investors are also keeping tabs on the Fed, after officials voiced doubts about a third consecutive rate cut in December, following the end of the longest government shutdown in US history.

The shutdown created a data gap for the US central bank, which heavily relies on consumer, labour and inflation data to drive its interest rate decisions.

"What likely triggered the selloff was the growing realisation that a full set of jobs and inflation data won’t land before the Federal Reserve’s December meeting," said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank.

"And if that’s the case - and if the Fed retains even a minimum degree of independence and reason - it wouldn’t cut rates blindly."

The Fed's comments hit safe-haven gold, which fell by as much as 3 per cent before paring losses. The precious metal, which has scaled new highs in 2025, settled 2.62 per cent lower at $4,080.78 per ounce.

Bitcoin was also hit, falling to the $95,000 level before recovering. It was down 1 per cent at about $96,200 on Saturday.

On Wall Street, indices recovered from early losses thanks to a rebound from Nvidia, as investors look forward to the stock market darling's third-quarter report next week.

Manus on Markets: US government shutdown ends, what's next? 01:40

The artificial intelligence chip leader and world's most valuable company fell by more than 3.5 per cent on Thursday and began the day 3.4 per cent lower, but recovered to end the week 1.8 per cent higher.

The Dow Jones Industrial Average settled 0.7 per cent lower and the S&P 500 retreated 0.1 per cent, while the tech-heavy Nasdaq Composite eked out a 0.1 per cent gain.

For the week, the Dow added 0.3 per cent, the S&P 500 gained 0.1 per cent and the Nasdaq fell 0.5 per cent. Year-to-date, the indices are up about 11 per cent, 15 per cent and 19 per cent, respectively.

"The next [economic] reports [would] give the Fed clarity it has lacked during the shutdown ... the possibility of a December reduction stays open," said Nigel Green, chief executive of Dubai-based financial services firm deVere Group.

“If the data supports that pattern, the conversation moves toward a more supportive policy setting. Investors then find renewed interest in US equities, especially Big Tech and companies tied to demand and investment growth," he said.

In Europe, London's FTSE 100 fell on reports that the government had stopped its plans to raise income tax on its upcoming budget.

UK Chancellor Rachel Reeves will announce the autumn budget on November 26, amid a growing deficit, inflation and high borrowing costs; not raising income tax will be breaking an election pledge.

Frankfurt's DAX declined 0.7 per cent, while Paris's CAC 40 retreated 0.8 per cent.

Earlier in Asia, major stock markets dove amid the tech bubble-fuelled sell-off and uncertainty on the Fed'