Nasdaq 100 posts strongest gain in nearly a month as AI stocks rebound
The Nasdaq-100 index rose 1.2% on Monday, its best performance in almost four weeks, while the S&P 500 gained 0.4% and the Dow slipped 0.1%, as investors renewed interest in artificial-intelligence related shares.
The Nasdaq-100 climbed 1.2% on Monday, marking its strongest day in nearly a month after a week-long decline in AI-related equities. The broader market showed mixed results, with the S&P 500 up 0.4% and the Dow Jones Industrial Average down 0.1%. Small-cap stocks tracked by the Russell 2000 rose 0.3%.
Technology-focused exchange-traded funds also moved higher; the Invesco QQQ Trust, which tracks the Nasdaq-100, gained 1.2%, while the VanEck Semiconductor ETF and the iShares Semiconductor ETF each added just over 2% on the back of gains in Micron Technology, Nvidia and Broadcom. By contrast, the Vanguard Information Technology ETF fell 1.5%.
Investor sentiment on Stocktwits shifted to neutral for the QQQ after previously being bearish, while sentiment for the SPY and DIA remained bearish.
Analysts noted that recent concerns about the sustainability of AI growth resurfaced after reports that Anthropic’s third-quarter sales rose to $16.8 billion, up from $11.6 billion in the prior quarter. Corporate bond investors also reduced exposure to CoreWeave, pushing its credit default swaps into distressed levels, and a Gartner report warned that a large portion of the neocloud market could contract.
Despite the broader AI-related sell-off, the Philadelphia Semiconductor Index rose about 1.6%, indicating some resilience in the sector.
Looking ahead, market participants will watch earnings from Meta Platforms and Tesla later in the week for clues on the pace of AI-driven growth.
"Results will show whether strong profit growth can restore confidence in the equity rally," said Mark Haefele of the UBS Chief Investment Office.
Other notable moves included a near-5% rise in Amazon.com shares after Morgan Stanley reaffirmed an overweight rating and raised its price target, a 3% gain for Bloom Energy following Oracle’s comments on its data-center project, and Apple confirming an October 28 product launch that is expected to feature its first touchscreen MacBook Pro. Palantir Technologies also rose after announcing a partnership with Knox Systems to support secure software deployments for U.S. government and defense customers.