Tech Stocks Surge, Driving Wall Street Rebound
Major U.S. stock indexes rebounded sharply on Monday, led by gains in technology and AI-related stocks, nearly erasing last week's losses.
On Monday, major U.S. stock indexes rebounded sharply, led by gains in technology and AI-related stocks, nearly erasing last week's losses. The S&P 500 rose 1.5%, the Dow Jones Industrial Average increased by 0.8%, and the Nasdaq Composite surged 2.3%, marking its best day since May.
Nvidia led the market's resurgence, climbing 5.8% after a previous week's decline amid concerns over AI-related overvaluation. Taiwan Semiconductor Manufacturing Co. (TSMC) saw its U.S.-traded shares rise 3.1% following a nearly 17% year-over-year revenue increase in October. Palantir Technologies, another AI-focused company, jumped 8.8%, recovering some losses from the prior week.
Conversely, health insurers faced declines due to uncertainty over expiring healthcare tax credits amid the ongoing U.S. government shutdown. Humana fell 5.4%, Elevance Health dropped 4.4%, and Centene decreased by 8.8%.
Berkshire Hathaway slipped 0.4% after CEO Warren Buffett cautioned shareholders that other companies might outperform Berkshire in the coming decades due to its massive size. Tyson Foods rose 2.3% after reporting stronger-than-expected quarterly profits.
Approximately 80% of S&P 500 companies reporting so far have exceeded analysts' profit expectations, helping to justify recent stock price increases. Analysts' earnings forecasts for 2026 are nearing pre-April levels, before President Trump's announcement of global tariffs.
International markets also saw gains, with South Korea's Kospi index rising 3%. Chipmaker SK Hynix, collaborating with Nvidia on AI technology, increased by 4.5%, while Samsung Electronics climbed 2.8%.
In the bond market, the yield on the 10-year Treasury held steady at 4.11%.