Nasdaq climbs as chip and AI-linked stocks bounce back
SPY•The Nasdaq rose 1.18%, the S&P 500 gained 0.53% and the Dow added 0.03% as chip and AI-related stocks rebounded after last week’s selloff. The Philadelphia Semiconductor Index was up about 2%, while oil rose about 2.3% to nearly $104 a barrel.
1. Technology stocks rebound
The Nasdaq led Wall Street higher on Monday as investors returned to chip and other AI-related stocks following last week’s selloff. The Philadelphia Semiconductor Index was up about 2%, on course to end an eight-day losing streak during which it fell about 15.7%.
2. Company shares move
Amazon rose 4.8% after Morgan Stanley named it its “top pick,” while Tesla gained 3.7%. CoreWeave was down more than 1.5% after giving back earlier gains following Goldman Sachs’ upgrade to “buy” from “neutral”; Intel rose close to 3% after J.P. Morgan upgraded it to “neutral,” and Cleveland-Cliffs surged about 16% after beating third-quarter profit estimates.
3. Earnings ahead
Investors were waiting for corporate earnings reports due in the coming days and weeks. Meta and Tesla were scheduled to report on Wednesday, while SpaceX was scheduled to report on Tuesday. A market strategist said sentiment in semiconductors had become sufficiently negative for a rebound, but cautioned that the market was “far from out of the woods.”
