Closing Bell: Equities Rally After Technology Stock Dip

Stocks rallied Monday as traders bought the dip in tech after heavy selling pressure last week among artificial intelligence-related stocks.

The S&P 500 (SPX) rose by roughly half a percent, while the Dow Jones Industrial Average ($DJI) was little changed. The tech-heavy Nasdaq-100 (NDX) rose 1.17%. The small-cap-focused Russell 2000 (RUT) was up about 0.25%. 

Chip and artificial intelligence stocks led gains Monday, with the PHLX Semiconductor Index (SOX) up 1.6%, snapping a multi-session losing streak. Advanced Micro Devices (AMD) rallied about 1.7%, SanDisk (SNDK) rose more than 5%, Western Digital (WDC) was up 5.8%, and Palantir Technologies (PLTR) rallied 4.8%. Among S&P 500 sectors, consumer discretionary and information technology stocks led gains, while utilities and real estate were the biggest laggards. 

The yield on the U.S. 10-year Treasury rose to 5.136%. The U.S. price of crude oil slipped about 0.6% to near $98.50 per barrel. 

Some stocks to watch from Monday’s market action:  

Amazon (AMZN) was one of the best performers in the S&P 500, rallying 5% after Morgan Stanley named the stock a top pick and hiked its price target to $350 from $335. The firm cited five catalysts for a bullish Amazon outlook: continued Amazon Web Services (AWS) growth, AWS margin beats, greater visibility into Bedrock, Amazon’s role in agentic shopping, and robotics. See AMZN Named Top Pick at Morgan Stanley, Sees Long AWS & Agentic AI Runway 

Intel (INTC) shares rose 2.5% to more than $92 ahead of its earnings report next week. JPMorgan upgraded the stock to neutral from underweight, with an $85 price target. JPM said Intel’s execution on next-generation manufacturing has significantly improved. See Options Corner: INTC Surges as Tech Bulls Find Footing | Morning Movers 

Neocloud company CoreWeave (CRWV) retreated from session highs to close down about 0.36% Monday. CoreWeave shares are down about 30% so far in October. Some of the company’s debt traded at distressed levels last week on fear about the health and financing structure of the artificial intelligence buildout. Goldman Sachs upgraded CoreWeave stock to Buy from Neutral. See AI Volatility Lowers Earnings Bar, Adds Pressure on Mag 7 CapEx and CRWV Rebound Pulls Bulls Back to AI Trade; META, TSLA & SPCX Earnings This Week 

Apple (AAPL) shares were down fractionally after it confirmed an Oct. 28 product launch to debut its first touch-screen MacBook. See The Big 3: CRWV, APPL, TEAM | Trading 360 

For more, see the Week in Review: Oil Up, Rates and Tech Lower as Volatility Rises and this week's earnings and economic calendars in the Week Ahead: Can Corporate Earnings Offset Inflation Risk?

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