US stocks today: Nasdaq leads Wall Street gains as chip, AI stocks rebound
Listen to this article in summarized format
ETMarkets.comNasdaq leads Wall Street gains as chip and AI stocks rebound
Nasdaq gained 1.11% to 26,430.89, while the S&P 500 rose 0.42% to 7,691.07. The Dow Jones Industrial Average slipped 0.06% to 51,970.20.
Chip stocks stage a comeback
The Philadelphia Semiconductor Index snapped an eight session losing streak, during which it had fallen about 15.7%, marking its longest run of declines since October 2008.The recovery came as investors moved back into beaten down technology names, with CoreWeave gaining attention after Goldman Sachs upgraded the stock to “buy” from “neutral”. The cloud computing provider had been at the centre of last week’s selloff, with its shares plunging more than 25% amid concerns over its $50 billion debt load.
Intel shares also rose after J.P. Morgan upgraded the stock to “neutral” from “underweight”, while Cleveland Cliffs jumped after the steelmaker reported third quarter profit above analysts’ estimates.
“Rubber bands can only stretch so far in one direction before they snap and start reversing, and you finally saw that enough is enough moment in the semiconductors after Friday's close,” Michael James, managing director and equity sales trader at Rosenblatt Securities, told Reuters.
Earnings keep investors cautious
The rebound came ahead of a busy stretch of corporate earnings, keeping investors wary after technology stocks suffered their biggest weekly decline since late June.“Nothing changed between Friday's close and this morning's open, other than nothing bad happened over the weekend, and sentiment had gotten so negative that we were oversold to the point where a bounce was due,” James said.
He cautioned that the market was “far from out of the woods” as investors awaited results from major technology companies. Meta and Tesla were due to report on Wednesday, while SpaceX was scheduled to report on Tuesday.
Oil prices also remained a factor for markets, with US crude settling 2.2% higher at $103.66 a barrel after renewed attacks involving Yemen's Iran aligned Houthis.