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The Dow gained 1,104 points, or 2.2%, on Monday, while the S&P 500 and Nasdaq also rose more than 2%. Nvidia fell 4.3% amid reports about an investigation concerning CEO Jensen Huang, while investors awaited October inflation data that could affect expectations for a Federal Reserve rate increase.
The Dow Jones Industrial Average rose 1,104 points, or 2.2%, to 52,389 on Monday as investors bought stocks that had fallen during the previous week’s broad selloff. The S&P 500 climbed 2.4% to 7,549, and the Nasdaq Composite advanced 2.7% to 25,253, leaving correction territory, even as Nvidia dropped 4.3% amid reports about an investigation concerning CEO Jensen Huang.
The market’s advance extended across all three major U.S. indexes, following the market’s choppy trading ahead of CPI. According to Dow Jones Market Data, Monday was the first session since April 5 in which the Dow, S&P 500 and Nasdaq each gained at least 2%. The gains followed a sharp decline the prior week, when concerns about possible political and regulatory headwinds to data center construction weighed on stocks, a reversal detailed in a market selloff report.
Some of the previous week’s hardest-hit shares rebounded. Micron Technology rose 6.3% and Sandisk gained 6.2%. Caterpillar, whose generators are used to power data centers, advanced 7.2% after falling more than 10% the previous week, making it the Dow’s strongest stock on Monday, the report said.
Advanced Micro Devices jumped 13.3% after Oppenheimer analyst Rick Schafer raised his rating on the chipmaker to Outperform from Perform. Schafer wrote that management sees revenue rising more than 80% next year despite supply constraints; he also projected data center revenue growth of 185% in 2027, citing demand for high-performance computing. Those figures are analyst expectations, not reported results.
A Broad Rebound With One Major Exception
Monday’s gains show that investors returned to stocks that had been hit in the preceding selloff, but one strong session does not establish whether the market has put that decline behind it. The simultaneous gains of more than 2% across the three indexes indicate a broad rebound, while the Nasdaq’s move out of correction territory marks a change in its recent market status.
The split between Nvidia and other chip-related shares also highlights that the sector was not moving as one. AMD and memory stocks rose, while Nvidia’s company-specific leadership concerns weighed on its shares. Investors were also facing a separate near-term issue: October inflation data that could shift expectations about the Federal Reserve’s next interest-rate decision.
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The Selloff, Nvidia Reports and Rate Outlook
The preceding week’s losses reflected concerns that incoming Democratic leadership in Washington and in states including Texas and Ohio could create obstacles for data center construction, according to the source report. That matters to companies tied to the buildout, including chipmakers and suppliers of power equipment. Monday’s gains included several such stocks, though the source does not establish that the concerns about future construction have been resolved.
Nvidia’s decline followed weekend media reports about Huang’s relationship with Alice Huang, an executive at a Singapore-based cloud company whom U.S. officials have classified as a Chinese spy. Nvidia’s board said it was starting an independent investigation, and the report said the CEO supported it and had committed to cooperating. The reported investigation and classification are attributed claims; the source provides no independent findings establishing wrongdoing by Huang or Alice Huang.
Investors were also watching the Federal Reserve. The source cited CME Group FedWatch futures pricing that put the chance of a quarter-point rate increase at the Fed’s next meeting at 84%. That was a market-implied probability, not a Fed decision. October’s Consumer Price Index was scheduled for release the next morning; the source said the report would not include a year-over-year figure because of the previous year’s government shutdown.
Investigation and Inflation Risks Remain
The source report does not provide details about the scope, timing or findings of Nvidia’s independent investigation. It also does not establish that Huang will leave his position, and the analyst quoted said there was no confirmed indication he would step down. The reported relationship and official classification remain attributed to media reports and U.S. officials rather than findings presented in the article.
It is also unclear from Monday’s trading whether the rebound will continue or whether concerns about data center development will return. The October CPI result had not yet been released at the time of the report, and the cited 84% probability of a quarter-point rate increase could change with the inflation data. The report did not specify how markets would respond to any particular CPI reading.
CPI Release and Board Inquiry Ahead
The next scheduled market catalyst in the report was the October Consumer Price Index release the following morning. Investors were expected to examine both the overall reading and the breadth of price increases across goods and services, which Lin said would help inform views on future monetary policy. The Federal Reserve’s next meeting was the point at which traders were pricing a possible quarter-point increase.
Separately, Nvidia’s board investigation remains ongoing, with the company saying Huang would cooperate. The source does not give a timetable for the inquiry or identify a date for any findings. Until more information emerges, a possible leadership change remains speculation, and the market’s next direction is not established by Monday’s gains alone.
Key Questions
How much did the Dow gain?
The Dow rose 1,104 points, or 2.2%, to 52,389 at Monday’s close.
Why did Nvidia shares fall?
Nvidia fell 4.3% amid media reports about an investigation concerning CEO Jensen Huang’s relationship with a woman U.S. officials have classified as a Chinese spy. Nvidia’s board said it was launching an independent investigation; the source does not report findings or confirm a leadership change.
Did the Nasdaq exit correction territory?
Yes. The Nasdaq Composite gained 2.7% to 25,253 on Monday and exited correction territory, according to the source report.
What market event was expected next?
The report pointed to the October CPI release, scheduled for the following morning. Its result could affect market expectations for a Federal Reserve rate increase, but the figures were not yet available in the report.
Source: kiplinger.com
