Wall Street Rebounds on Tech Dip Buying
US stock indices rebounded on Monday from last week’s rout as renewed dip buying drove the market toward its best day since April. The S&P 500 gained over 2%, the Dow rallied more than 1,000 points, and the Nasdaq outperformed with a gain of over 3%. Chipmakers rallied after Friday’s plunge, when Democrats took control of Congress and drove markets to speculate on lower returns for AI companies, compounding concerns that the sector’s growth was slowing. AMD (+13%) was upgraded to outperform at Oppenheimer. Broadcom and Lam Research surged nearly 9%, Micron jumped 6%, and Applied Materials soared over 11.5% ahead of its earnings this week. In contrast, Nvidia tumbled 5% after CEO Jensen Huang admitted to an affair with a suspected Chinese spy, potentially prompting Congress to tighten export controls on its chips. Among hyperscalers, Alphabet (+2%) is rolling out a broader array of AI chips. Meta jumped 5%, Microsoft rose 2.5%, and Amazon added 3.5%.
US stock indices rebounded on Monday from last week’s rout as renewed dip buying drove the market toward its best day since April. The S&P 500 gained over 2%, the Dow rallied more than 1,000 points, and the Nasdaq outperformed with a gain of over 3%. Chipmakers rallied after Friday’s plunge, when Democrats took control of Congress and drove markets to speculate on lower returns for AI companies, compounding concerns that the sector’s growth was slowing. AMD (+13%) was upgraded to outperform at Oppenheimer.
Broadcom and Lam Research surged nearly 9%, Micron jumped 6%, and Applied Materials soared over 11.5% ahead of its earnings this week. In contrast, Nvidia tumbled 5% after CEO Jensen Huang admitted to an affair with a suspected Chinese spy, potentially prompting Congress to tighten export controls on its chips. Among hyperscalers, Alphabet (+2%) is rolling out a broader array of AI chips. Meta jumped 5%, Microsoft rose 2.5%, and Amazon added 3.5%.