Wall Street rebounds, Nasdaq up 3% as Nvidia falls 9%
U.S. equities opened higher on Monday, with the Dow Jones Industrial Average gaining 844 points (1.65%), the S&P 500 rising 2%, and the Nasdaq Composite climbing 3.4% to intraday highs, signaling a rebound from last week’s steep declines.
The recovery follows a week in which the S&P 500 recorded its largest weekly loss since April 2025 and the Nasdaq 100 lost $2.3 trillion on Thursday amid fears of Democratic regulatory action on AI. Value investors returned to beaten-down stocks, and falling crude oil prices added support, as Brent crude slipped 4% toward $94 a barrel after a prior 16% drop.
Nvidia was the standout laggard, dropping 9% to a seven-month low of $170 after CEO Jensen Huang disclosed an affair with a woman identified as a suspected Chinese spy. The news briefly pushed Nasdaq 100 futures down about 1% in Asian trading before they recovered.
Despite Nvidia’s slump, other chip makers advanced: Broadcom and AMD each rose 5%, and ON Semiconductor added 3%. Several “Magnificent Seven” members also posted gains, with Amazon up 5% and Tesla, Alphabet, and Microsoft each climbing more than 3% or 2% respectively.
Investors will watch upcoming earnings from AI-related firms such as CoreWeave, Cisco Systems, and Applied Materials, as well as U.S. inflation data due Tuesday, which could influence expectations for a Federal Reserve rate hike that traders now view as an 80% probability by year-end.
The U.S. Labor Department reported 165,000 jobs added in October, far exceeding the 65,000 forecast and the 48,000 average over the prior year, underscoring a resilient labor market.
Why it matters
The market bounce shows investor confidence returning, but Nvidia’s drop highlights how corporate governance issues can still sway tech stocks.
FAQ
What were the intraday gains for the major U.S. indices on Monday?
The Dow Jones rose 1.65% (844 points), the S&P 500 gained 2%, and the Nasdaq Composite increased 3.4%.
Why did Nvidia’s shares fall sharply?
Nvidia fell 9% to $170 after CEO Jensen Huang disclosed an affair with a woman identified as a suspected Chinese spy.
Which chip makers rose despite Nvidia’s decline?
Broadcom and AMD each jumped 5%, and ON Semiconductor gained 3%.
What economic data are investors awaiting this week?
U.S. inflation data due Tuesday and earnings from AI-related companies such as CoreWeave, Cisco Systems, and Applied Materials.
Source: Mint Markets. See the original source for full details.
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