"A buying opportunity is emerging": Nasdaq jumped 1% after the sell-off
Chipmakers' stocks are also rising
Photo: X / NYSE
U.S. stocks partially rebounded on October 19 following last week’s sell-off, during which the Nasdaq Composite fell at its fastest pace since June. Bloomberg notes that this trend marks a positive start to the week, during which earnings reports from SpaceX and Meta will put the artificial intelligence market to the test.
Details
The broad U.S. stock index, the S&P 500, rose 0.5% in the first minutes of trading on Monday; the tech-heavy Nasdaq Composite gained just over 1%, while the Dow Jones remained virtually unchanged; it is the only one of the three major U.S. stock indices in the “red,” losing a symbolic 0.11%. The Philadelphia Semiconductor Index, which tracks the performance of semiconductor stocks, is up 2.64%, suggesting that it will end the day in positive territory for the first time in the last 10 sessions, notes Bloomberg.
Last week, as Reuters notes, the S&P 500 and the Nasdaq Composite posted their biggest weekly declines since late June: concerns that high interest rates could curb investment in AI infrastructure weighed on tech stocks, particularly data center operators. The sell-off reflected growing investor concern about how the costly development of AI will be financed. However, on October 19, CoreWeave shares—which had fallen by more than 25% the previous week—are, on the contrary, rising. Shares of chipmakers Broadcom and Micron are also in the green. Shares of major tech companies Nvidia and Amazon are also rising.
On October 19, falling oil prices are providing additional support to the market, according to Reuters: Brent futures for December delivery fell 1.67% to $108 per barrel (they dropped to an intraday low of $106.82). Meanwhile, November WTI contracts are also down by about 1%, trading around $100. CNBC attributes this trend to traders’ reaction to a potential increase in supplies from Russia: on Friday, U.S. President Donald Trump suspended the imposition of new tariffs on buyers of Russian energy products, citing national interests, the network notes.
What People Are Saying in the Market
"Whenever we see a day like Friday, a buying opportunity arises, since the significant declines in the stocks of leading technology companies are unwarranted," says Edison Bizika, chief investment officer at Credent Wealth Management.
“Last week’s sell-off in the tech sector was triggered by rising interest rates and issues at CoreWeave, which sent shockwaves through the entire market. I don’t think it’s over yet,” said Sam Stovall, chief investment strategist at CFRA Research. “Of course, corporate earnings reports will be important this week, but investors will be assessing which companies are most vulnerable,” he added.
This article was AI-translated and verified by a human editor
