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Stocks surged on Monday, boosted by a decline in oil prices as well as gains in technology shares after last week’s volatility.
The Dow Jones Industrial index soared 1,103.79 points, or 2.2%, to 52,389.52, supported by gains in stocks such as Goldman Sachs and Caterpillar.
The S&P 500 index accelerated 172.95 points, or 2.3%, to 7,549.81.
The tech-heavy NASDAQ climbed 673.71 points, or 2.7%, to 25,253.14.
With Monday’s rally, the Dow is now above the level it closed on Election Day. The S&P 500 and tech-heavy NASDAQ still remained slightly below, however.
The tech sector also focused on the bombshell announcement Sunday that Nvidia’s board of directors is opening an investigation into co-founder and CEO Jensen Huang’s relationship with a businesswoman who U.S. intelligence agencies say is a Chinese spy. Nvidia shares were last down 5%.
“Magnificent Seven” names were higher contrary to Nvidia. Amazon gained 3%, while Tesla sprang 6% and Alphabet 1%. Microsoft also added 3%.
Other chip stocks advanced as well, with Broadcom popping 9% and Advanced Micro Devices jumping 13%.
This week, investors are looking ahead to key AI-related earnings — CoreWeave, Cisco and Applied Materials are all on deck — as they assess the outlook for tech and whether the recent selloff has further to run.
Friday’s market partially rebounded from Thursday’s brutal AI-driven selloff, as chip stocks recovered on renewed buying. However, concerns linger in the wake of the Democrats’ strong midterm results, with investors fearing that tighter regulations on data center construction, energy use, and development costs could slow the AI infrastructure boom.
Prices for the 10-year Treasury hesitated, raising yields to 4.87% from Friday’s 4.86%. Treasury prices and yields move in opposite directions.
Oil prices withered $3.87 to $86.96 U.S. a barrel.
Gold prices recovered $76.00 to $4,150.90 U.S. an ounce.
