By Tharuniyaa Lakshmi and Ragini Mathur Oct 23 (Reuters) - The tech-heavy Nasdaq edged higher on Friday, helped by signs of stabilization in some tech stocks, while telecom shares tumbled on concerns that SpaceX's entry in the sector could heighten competition and threaten their market share.

The Nasdaq has erased its losses on the day and is close to erasing its weekly decline, as the bounce in technology stocks has picked up some steam. The State Street Technology Select Sector SPDR ETF was rising 1%,

Tech stocks were hammered amid fresh concerns about the outlook for AI.

U.S. major stock indexes finished mostly lower on Friday due to a continued technology selloff that rattled the markets and the rise in oil prices from the ongoing U.S.-Iran war. The benchmark S&P 500 ( SP500) closed -0.5%, while the tech-heavy Nasdaq Composite ( COMP:IND) finished -0.2%, and the blue-chip Dow ( DJI) ended -1.2%.

Tech stocks might be stabilizing today after Thursday’s selloff, but the bonds of AI-related companies are continuing to struggle. The extra yields, or spreads, that investors demand to hold the bonds of Oracle,

Adobe trades at lower multiples while Salesforce generates twice the free cash flow, a classic growth-vs.-value showdown.

The U.S. stock market was set to fall sharply Thursday as tech names sold off after Meta and Tesla earnings. But the broader market was also down, along with gold, silver, bitcoin and Treasury yields.

The sell-off happened quickly today as investors fled technology stocks for more defensive sectors such as classic blue-chip stocks.

Global tech stocks tied to AI data centers are under pressure as power supply becomes a choke point, which quietly puts hydrogen fuel cell technology on more investors’ radar as an alternative source of reliable electricity.