US equities climbed on Monday, with the Dow Jones Industrial Average adding 597 points as a sharp drop in crude oil prices improved the mood across markets. The S&P 500 opened 1.16% higher, and the Nasdaq Composite advanced 1.43%, as investors hunted for signals that the recent bout of volatility in technology shares might be easing.
The rally followed a mixed finish to last week. On Friday, the Nasdaq Composite rose 1.09% and the S&P 500 added 0.31%, recovering part of the ground lost in Thursday's artificial-intelligence-driven selloff. The Dow, by contrast, slipped 237.33 points, or 0.46%, that day, leaving sentiment cautious even after the rebound.
Oil's slide supports broader market
Crude prices fell hard on Monday, providing a tailwind for equities. West Texas Intermediate dropped 4.62% to $86.63 a barrel, while Brent declined 4.87% to $93.53. The move in energy markets helped offset pressure elsewhere and gave investors a reason to add risk exposure.
Even so, several macro concerns remain in play. Stronger-than-expected US employment data have raised the probability of another Federal Reserve rate hike in December. In addition, Democratic victories in the midterm elections have stoked worries about potential restrictions on data center construction, energy consumption and development costs — factors that could weigh on the near-term outlook for AI-related companies.
Nvidia probe adds to AI jitters
Nvidia shares fell roughly 6.5% after the company opened an investigation into reports concerning CEO Jensen Huang's relationship with a businesswoman whom intelligence agencies reportedly suspect of being a Chinese spy. The development intensifies pressure on the world's second-most-valuable company, which has already been buffeted by the recent selloff in AI-linked trades.
Other semiconductor names were more subdued. Intel edged up 0.1% and Marvell Technology gained 3.6%, while Qualcomm slipped 0.5%. AMD jumped 5.55% after Oppenheimer upgraded the chipmaker. Among large technology companies, Microsoft, Alphabet, Meta and Amazon rose between 2% and 5%. The Philadelphia Semiconductor Index had posted its largest weekly loss since March 2025 on Friday.
Investors are also monitoring whether major technology firms might trim their capital expenditure plans, a step that would potentially reduce demand for AI infrastructure.
Inflation data and AI earnings on deck
Traders are bracing for a busy week of economic and corporate news. The October Consumer Price Index is due Tuesday, followed by the Producer Price Index on Friday. Both inflation reports could shape expectations for the Federal Reserve's next interest rate decision.
On the earnings front, AI-related companies CoreWeave, Cisco and Applied Materials are scheduled to report, giving investors fresh insight into technology spending and demand for AI infrastructure.
In other corporate moves, KKR fell 0.77% despite reporting record quarterly profit. Constellation Energy gained 1.6% after its adjusted third-quarter profit topped expectations. Berkshire Hathaway's Class B shares slipped 0.42% after the conglomerate posted lower third-quarter profit.
This article is for informational purposes only and does not constitute financial advice.
