Stocks staged a sharp rebound on Monday, with the Dow Jones Industrial Average jumping 1,104 points, or 2.2%, to close at 52,389 as declining oil prices eased inflation concerns and helped markets recover from their biggest weekly drop since April 2025.
While the S&P 500 and the Nasdaq both advanced more than 2%, the technology sector navigated a turbulent backdrop. Nvidia shares slid more than 4% to hit their lowest intraday level since March 31. The retreat followed an internal investigation into whether CEO Jensen Huang had been targeted by a foreign intelligence effort.
The company launched the internal review following reports regarding Huang’s relationship with an alleged Chinese spy.
Despite the controversy surrounding its chief executive, market strategists emphasized the enduring strength of the broader artificial intelligence sector.
The AI story is not going away if people are worried about that, the Democrats are not going to destroy AI. They can’t. It’s got a life of its own. They can put regulation around it, but they’re certainly not stopping it,
said Ken Polcari, partner and chief market strategist at SlateStone Wealth in Jupiter, Florida.
Market participants also found relief in the commodities sector. A sharp drop in crude oil prices helped dampen broader concerns about price pressures after US President Donald Trump downplayed the likelihood of renewed strikes on Iran.
Oil prices for sure, if they’re down 4%, that’s certainly adding fuel to the fire,
Ken Polcari, SlateStone Wealth
The previous week’s market rout stemmed partly from a sweeping victory by Democrats in the US midterm elections, which triggered fears that new regulations could dent the durability of the AI trade. However, major Wall Street brokerages including Morgan Stanley and UBS dismissed those concerns as overdone, arguing that extreme regulatory measures under a Democratic-controlled Congress remain unlikely.
Other chipmakers and financial firms posted notable gains during Monday’s session. Broadcom shares advanced nearly 9%, and Advanced Micro Devices surged 13%. Meanwhile, investment giant KKR climbed 1.7% following a record high quarterly profit, and Constellation Energy shot up more than 10% after beating third-quarter adjusted profit expectations.
Investors now turn their attention to upcoming inflation readings. The Labor Department is scheduled to release the Consumer Price Index report for October on Tuesday, followed by the Producer Price Index on Friday, even as persistence regarding potential December interest rate hikes lingers following stronger-than-expected October jobs data.
Earlier coverage: Nvidia Board Investigates Jensen Huang Over Alleged Affair
