Wall Street staged a lopsided recovery on Monday, with technology shares rebounding from last week’s sell-off while the Dow Jones Industrial Average slipped slightly. Investors bought back into beaten-down artificial intelligence and semiconductor names, easing worries about AI spending and financing costs that drove the Nasdaq to a 4.5% weekly loss, its worst week since June. A pullback in oil prices also helped sentiment, though a busy week of corporate earnings is now in focus.
What Moved Markets
The Nasdaq Composite gained 290.85 points, or 1.11%, to close at 26,430.89. The S&P 500 rose 31.29 points, or 0.41%, to finish at 7,690.73. The Dow Jones Industrial Average was the lone laggard, slipping 43.15 points, or 0.08%, to close at 51,959.26.
The split reflected a rotation back into growth stocks after last week’s rout, when worries about rising borrowing costs, heavy AI infrastructure spending, and whether tech companies can earn enough to justify it all weighed on the market. The semiconductor sector led the rebound, with a widely followed chip ETF jumping roughly 3% in morning trading after falling about 12% last week. Defensive areas such as energy and consumer staples, which had been October’s winners, gave back some ground, which helped keep the Dow in the red.
Oil also played a role. Brent crude fell about 2% to near $107 a barrel after President Trump moved to waive some sanctions on Russia, offering a bit of relief on energy costs. Even so, supply worries remain elevated, with reports of another tanker striking a mine in the Strait of Hormuz.
Notable Movers
Intel (INTC) was a standout, rising roughly 4% after JPMorgan upgraded the stock to Neutral from Underweight. The analyst cited improved execution under the company’s new CEO but cautioned that Intel may keep losing server market share for a few more quarters. Intel reports earnings on October 29.
Advanced Micro Devices (AMD) climbed about 4% in sympathy, and Micron Technology (MU) gained more than 3%. Nvidia (NVDA) rose a more modest 2% in morning trading.
CoreWeave (CRWV) rose about 3% after Goldman Sachs upgraded the data center operator. The stock had plunged more than 25% last week on concerns about its debt load and its ability to fund expansion, so Monday’s move was a small step back.
Amazon (AMZN) and Broadcom (AVGO) each added more than 2% as large AI-linked names joined the bounce.
Looking Ahead
Earnings take center stage this week. Meta Platforms and Tesla report on Wednesday, with Netflix, General Motors, and GE Aerospace also on the calendar. Investors will be listening closely for what these companies say about AI spending and consumer demand. The Federal Reserve meets October 27-28 and is widely expected to hold interest rates steady at 3.75% to 4%, but persistent inflation and high energy prices will keep policymakers and markets on edge. After a sharp drop and a one-day bounce, expect volatility to stay elevated.