Stocks Rebound Sharply as Nasdaq Exits Correction; Nvidia Falls
The Dow rose 2.15%, the S&P 500 2.35% and the Nasdaq 2.74% on Monday after last week's AI sell-off, while Nvidia fell about 4%.
What happened
U.S. stocks rebounded sharply on Monday after the previous week's sell-off in AI-related shares. CNBC reported that the Dow Jones Industrial Average closed at 52,389.75, up 1,104.02 points, or 2.15%, the S&P 500 closed at 7,549.94, up 2.35%, and the Nasdaq Composite closed at 25,253.14, up 2.74%. Yahoo Finance, citing Dow Jones Market Data, reported that it was the first day since April 5 that all three benchmarks rose 2% or more, and that the Nasdaq moved out of correction territory.
Market reaction
| Index / asset | Monday close | Change |
|---|---|---|
| Dow Jones Industrial Average | 52,389.75 | +2.15% |
| S&P 500 | 7,549.94 | +2.35% |
| Nasdaq Composite | 25,253.14 | +2.74% |
| WTI crude (settle) | $86.85 | -4.38% |
| Brent crude (settle) | $92.57 | -5.85% |
CNBC reported that the iShares Semiconductor ETF (SOXX) rose more than 7%. According to Yahoo Finance, AMD rose 13.3% after an Oppenheimer upgrade to Outperform, Micron rose 6.3% and Sandisk rose 6.2%. Caterpillar gained 7.2%, the best performer in the Dow, after falling more than 10% the prior week.
Nvidia was the exception. Both outlets reported that its shares fell about 4% after the company's board opened an independent investigation involving CEO Jensen Huang. Yahoo Finance reported that Nvidia was the Dow's worst performer.
Why traders watch it
CNBC attributed the rally to lower oil prices and a rebound in tech shares after last week's AI-driven sell-off. Yahoo Finance's report pointed to bargain hunters returning after the broad sell-off and to a recovery in last week's biggest losers, including memory stocks. Traders watch a two-way swing of this size because it shows how sensitive the market has become to AI-related shares and to energy prices.
CNBC also noted that investors remain concerned about possible tighter rules on data centers and energy use after the midterm elections, that oil prices remain elevated because of the conflict in the Middle East, and that the Federal Reserve's rate outlook is a worry.
What to watch next
- The consumer price index (CPI) report is due Tuesday at 8:30 a.m. ET, or 5:30 a.m. PT, according to Yahoo Finance.
- CNBC listed the producer price index (PPI) report for Friday.
- CNBC listed earnings this week from CoreWeave, Cisco and Applied Materials.
- CNBC noted that the next Federal Reserve meeting is in December.
Figures are Monday's closing levels as reported by CNBC and Yahoo Finance. This post is a summary of reported facts and not a forecast.
