Stocks rebound as traders shrug off AI fears and watch Nvidia

Wall Street indexes surged on Monday, recovering from a sharp sell-off in artificial intelligence stocks that dominated trading last week.

The Dow Jones Industrial Average rose 652.49 points, or 1.27%, to close at 51,938.22 as of 9:46 a.m. ET. The S&P 500 gained 108.81 points, or 1.48%, to reach 7,485.67. The Nasdaq Composite climbed 458.92 points, or 1.87%, to hit 25,038.34.

Nine of the 11 major S&P 500 sectors finished in positive territory. Consumer discretionary and communication services led the market advance. On the NYSE, advancing issues outnumbered decliners by a ratio of 3.87 to 1. On the Nasdaq, the ratio stood at 2.32 to 1.

Nvidia shares dropped 5.6%, standing in contrast to the broader market recovery. An internal inquiry into whether CEO Jensen Huang was the target of a foreign intelligence operation has clouded his future at the chipmaker. Nadia El Bilassy, a senior market analyst at Equiti Group, described the news as a poor headline for tech stocks. She noted that investor attention will likely shift to inflation data later in the week.

The Labor Department is scheduled to release its October Consumer Price Index report on Tuesday. Economists polled by Reuters project a 2.7% year-over-year increase in prices. Concerns about a potential rate hike in December have also lingered following stronger than expected jobs data reported last month.

Chipmakers other than Nvidia saw gains. Marvell Technology rose 5%, and Broadcom climbed 6.5%. Intel and Qualcomm both increased by nearly 2%. The Philadelphia Semiconductor Index jumped 3.3%, reversing its worst week since March 2025. Large technology companies including Microsoft, Alphabet, Meta, and Amazon all rose between 2.5% and 5%. Tesla and SpaceX each gained 4.5%.

KKR shares edged up 1% after the firm reported record quarterly profits. Constellation Energy, which has exposure to the AI sector, rose 2.8% after its adjusted third-quarter profit beat estimates. Berkshire Hathaway class B shares fell 0.1% following a report of lower third-quarter profits. Tajinder Dhillon of LSEG Data and Analytics stated that 82.4% of the 335 S&P 500 companies that had reported earnings as of Thursday beat analyst estimates.