After the Nasdaq's worst week since June, artificial intelligence stocks caught a breath on Monday, Oct. 19, pulling the tech-heavy index higher even as most of the rest of the market slipped.
The Nasdaq Composite rose 290.85 points, or 1.1%, to 26,430.89, according to the Associated Press. The S&P 500 gained 31.29 points, or 0.4%, to 7,690.73. The Dow Jones Industrial Average fell 36.38 points, or 0.1%, to 51,966.03, and the small-company Russell 2000 rose 0.3% to 2,728.30.
Why did AI stocks rebound on Oct. 19?
AI and chip stocks bounced because they had fallen so far, so fast. Last week, worries that higher interest rates could squeeze the debt-funded AI spending boom sent both the S&P 500 and the Nasdaq to their worst week since late June. On Monday, analyst upgrades and bargain hunting helped tech recover part of that drop.
Reuters reported that the Philadelphia Semiconductor Index, a widely watched basket of chip stocks, jumped 2.5% in morning trading and was on track to snap an eight-day losing streak, its longest since October 2008. Investors have been uneasy about how the costly AI buildout will be financed.
The AP noted that Nvidia, the largest U.S. stock by market value, had the biggest effect on the S&P 500 as it rose 2.1% around midday. CoreWeave, which borrows to buy AI chips that it rents out over the cloud, had lost 25.2% last week; on Monday, Goldman Sachs upgraded it to buy from neutral.
Which stocks moved the most?
Amazon was one of the day's standouts. Shares closed up 4.95% after Morgan Stanley…
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Compound growth estimate
Estimated total
$17,175
Your contributions
$13,000
This is an estimate, not a prediction. Monthly compounding; taxes, fees and inflation are excluded.
This article is for educational purposes only and isn't personalized financial, tax or legal advice. Consider talking with a qualified professional about your situation.
Kiara Miller — Founder & Editor
Kiara Miller is the founder and editor of The Evergreen Edit. He has been doing independent finance research for two decades and reviews every article before it's published.
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