US stocks: Dow Jones rallies 500 points, Nasdaq over 2% as chip stocks rebound; Nvidia probe weighs

Wall Street’s main indexes rose on Monday as investors looked past last week’s AI-related concerns and awaited further clarity on the controversy surrounding Nvidia CEO Jensen Huang, Reuters reported.

Meanwhile, the Dow Jones Industrial Average rose 569.51 points, or 1.11%, to 51,855.24. The S&P 500 rose 109.17 points, or 1.48%, to 7,462.90, while the Nasdaq Composite gained 616 points, or 2.53%, to 24,931.00.

The rebound comes as a crucial week begins, which could help determine whether last week’s sell-off after the midterms was overdone or justified. Analysts cautioned that several risks continued to weigh on market sentiment.


Nvidia shares fell 5.6% after an internal investigation into whether a foreign intelligence operation had targeted Huang raised questions about his future at the AI chipmaker. Nvidia is the world’s second-most valuable company.

“This was just the cherry on top for investors looking to pull out of AI-linked stocks. It’s a very bad headline that’s affecting tech stocks,” Nadia El Bilassy, senior market analyst at Equiti Group, told Reuters.

El Bilassy said the focus on Nvidia could ease later in the week “when we have more important things to discuss, like the inflation data.”

The US Labor Department is scheduled to release October’s Consumer Price Index report on Tuesday. Economists polled by Reuters expect inflation to have risen 2.7% from a year earlier.

Concerns about a potential interest-rate hike in December also persisted following stronger-than-expected US jobs data for October.

Nine of the 11 major S&P 500 sectors traded higher, led by consumer discretionary and communication services.

Morgan Stanley and UBS said last week’s rout in AI-linked stocks appeared overdone. The Wall Street brokerages argued that the prospect of severe restrictions on data-centre development under a Democrat-controlled Congress was unlikely to materialise.

Chip stocks rise as investors assess earnings

Chip stocks advanced, with Marvell Technology gaining 5% and Broadcom rising 6.5%. Intel and Qualcomm climbed nearly 2% each.

The Philadelphia Semiconductor Index rose 3.3% after recording its steepest weekly loss since March 2025 last week.

Among major technology companies, Microsoft, Alphabet, Meta and Amazon gained between 2.5% and 5%. Elon Musk-led Tesla and SpaceX rose 4.5% each.

KKR shares gained 1% after the investment firm reported record quarterly profit. Constellation Energy, which has exposure to the AI boom, rose 2.8% after its adjusted third-quarter profit exceeded expectations.

Of the 335 S&P 500 companies that had reported earnings as of Thursday, 82.4% beat estimates, according to Tajinder Dhillon, head of earnings and equity research at LSEG Data and Analytics.

Berkshire Hathaway’s Class B shares slipped 0.1% after the conglomerate reported lower third-quarter profit.

Advancing stocks outnumbered decliners by 3.87 to 1 on the New York Stock Exchange and by 2.32 to 1 on the Nasdaq.

The S&P 500 recorded four new 52-week highs and two new lows, while the Nasdaq Composite registered 36 new highs and 80 new lows.


(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)