US stock indices rebounded on Monday from last week’s sharp selloff, as renewed dip buying helped drive the market to its strongest session since April. The S&P 500 climbed more than 2%, the Dow advanced over 1,000 points, and the Nasdaq led the major averages with a gain of more than 3%.
Chipmakers bounced back after Friday’s steep decline, which followed Democrats’ consolidation of control in Congress and stoked speculation about potential pressure on returns for AI companies, reinforcing existing worries about a slowdown in the sector’s growth. AMD (+13%) was upgraded to “outperform” at Oppenheimer. Broadcom and Lam Research each rallied nearly 9%, Micron gained about 6%, and Applied Materials surged more than 11.5% ahead of its earnings report this week.
Nvidia, however, fell 5% after CEO Jensen Huang acknowledged an affair with an individual suspected of working as a Chinese spy, a development that could prompt Congress to consider tighter export controls on the company’s chips.
Among the major cloud and AI “hyperscalers,” Alphabet (+2%) continued rolling out a broader lineup of AI chips. Meta jumped 5%, Microsoft rose 2.5%, and Amazon added 3.5%.