Wall Street’s battered technology trade caught a break on Monday as the Nasdaq Composite jumped 1.11 per cent to close at 26,430.89, led by a rebound in semiconductor stocks that snapped their longest losing streak since the 2008 financial crisis.
The tech-heavy index gained 290.85 points, according to reports, while the S&P 500 rose 0.41 per cent to 7,690.73. The Dow Jones Industrial Average slipped 0.07 per cent to 51,966.03. The Philadelphia Semiconductor Index advanced 1.61 per cent, ending an eight-session slide during which it had fallen about 15.7 per cent.
Memory chips lead the bounce
Memory stocks powered the recovery: SanDisk gained 5.53 per cent, Western Digital climbed 6.09 per cent, SK hynix rose 4.67 per cent and Micron Technology advanced 2.97 per cent, according to reports. Among megacaps, Amazon gained about 5 per cent, Palantir rose more than 4 per cent and Intel added 2.4 per cent following a JPMorgan upgrade. CoreWeave slipped 0.44 per cent, extending a brutal week in which it lost roughly a quarter of its value.
Michael James of Rosenblatt Securities said sentiment had grown excessively negative: “Rubber bands can only stretch so far in one direction before they snap and start reversing,” he said, according to reports. He cautioned that nothing fundamentally changed over the weekend, and with Meta and Tesla earnings due this week, the market was far from out of the woods.
Relief, not recovery
The rebound followed the worst week for the S&P 500 and Nasdaq since late June, driven by worries that higher interest rates could raise the cost of financing AI infrastructure. Crude markets stayed volatile: WTI rose 2.22 per cent to 103.66 dollars a barrel while Brent slipped 0.28 per cent to 109.55 dollars, and gold eased 0.49 per cent to 4,139 dollars an ounce, according to reports. Asian markets reversed course on Tuesday, signalling the AI trade remains fragile.
