Nasdaq Gains 1.4% as Tech Buyers Return After 4.5% AI-Led Rout
Updated
Updated · CNBC · Oct 19
Nasdaq Gains 1.4% as Tech Buyers Return After 4.5% AI-Led Rout
3 articles · Updated · CNBC · Oct 19
Summary
The Nasdaq Composite rose 1.4% Monday, lifting the S&P 500 0.7% and the Dow 52 points as investors bought back into beaten-down tech shares.
Last week’s selloff was driven by fresh doubts about the AI trade after Anthropic’s reported third-quarter revenue of $16.8 billion raised concerns that growth in AI spending is slowing.
Chip names led the rebound: Intel jumped 5% after a JPMorgan upgrade, while AMD gained 3% and Micron added 4%.
Risk appetite remained fragile as Goldman said hedge funds sold a record share of tech last week and AI-related credit spreads widened, with CoreWeave CDS hitting distress levels.
Oil stayed in focus after attacks on Persian Gulf shipping and Russia-Ukraine energy infrastructure, though Brent slipped below $108 and investors looked to Meta and Tesla earnings for market stability.