Stocks Lead Rebound on Wall Street as Tech Shares Rise
Wall Street stocks recovered some ground as investors bought beaten-down technology shares and looked ahead to key earnings reports. The Nasdaq rose 1.1% and…
ORLANDO, Florida — Stocks lead rebound on Wall Street on Monday as investors bought beaten-down technology shares and looked ahead to key earnings reports. The Nasdaq rose 1.1% and the S&P 500 gained 0.4%, while unrest in France weighed on European markets and French bonds.
The Dow was flat. The recovery came after last week’s selloff, as easing concerns about artificial intelligence cooled demand for safe-haven bonds and pushed US yields higher, Reuters reported.
Technology shares gained 1.2%, while consumer cyclicals rose 2.7%. Four S&P 500 sectors advanced and seven declined. Western Digital rose 6% and Amazon gained 5%, while JPMorgan Chase fell 2%.
The gains offered some relief to investors who had seen technology shares retreat. But the Reuters report noted that the recovery followed a difficult stretch for semiconductor stocks, leaving the market focused on whether earnings reports would support the renewed buying.
Semiconductor shares snap losing streak
The “SOX” semiconductor index rose 2.5% on Monday, ending an eight-day losing streak. Reuters described that run as the index’s worst since October 2008.
The rebound still had ground to recover. The index had fallen 11.5% last week, and Reuters said more gains would be needed to offset that decline. The next test for sentiment is the arrival of technology earnings, which investors are watching as they reassess the outlook for AI-related stocks.
Reuters said worries about AI had eased from the previous week, helping lift US investor sentiment. The report also cautioned that a shift in investor confidence could carry broader consequences, because AI is increasingly tied to global capital flows and economic imbalances.
France weighs on European markets
European markets moved lower as unrest and riots in France pressured French bond prices and pushed the euro down. France’s market fell 1%, while Italy and Spain dropped more. European and UK markets slid around 1%, according to the Reuters market summary.
French bond yields and spreads jumped. US yields rose around 3-4 basis points across the curve as demand for safer bonds eased. The dollar strengthened against most major currencies, with the Australian and Canadian dollars exceptions.
Those moves show how political strain can reach beyond equities. The Reuters report said protests in France added to concerns about the country’s fiscal challenges, while also noting that polarized politics and looming elections are factors investors are weighing in France, Brazil and the US.
For investors tracking markets, the session delivered a split picture: US technology shares recovered, but European equities and French bonds remained under pressure. Oil was mixed, with Brent down 0.5% and WTI up 2%, while China’s yuan reached a four-year high against the dollar.
Reuters also reported that China’s economy grew by 4.5% in the third quarter, faster than economists had expected, with growth driven by exports. The report linked the country’s expanding trade surplus to wider global imbalances that the International Monetary Fund and others have warned about.
Technology earnings are now coming into focus as investors judge whether Monday’s bounce can extend beyond a single session. Reuters said last week’s 11.5% semiconductor decline left more ground to recover.
Source: finance.yahoo.com
