The key facts

  • Dow rose 1,104.02 points (2.15%) to 52,389.75; S&P 500 gained 2.35%, Nasdaq rose 2.74%
  • VIX fell 22.31% to 19.92; Brent dropped 5.85% to $92.57
  • Nvidia lost about 4.3% after announcing an independent investigation into reports of an attempted foreign influence operation targeting its CEO

Sharp rebound after the sell-off

US stock markets closed significantly higher on Monday amid a recovery in technology stocks and falling oil prices, Anadolu reports. The Dow Jones index gained 1,104.02 points (2.15%) to 52,389.75, the S&P 500 rose 2.35% to 7,549.94, and the Nasdaq Composite climbed 2.74% to 25,253.14. The VIX volatility index, known as Wall Street's 'fear gauge,' fell 22.31% to 19.92. The gains extended the partial recovery seen on Friday after a sharp sell-off in the technology sector.

The technology sector and the exception — Nvidia

Chipmakers led the recovery: Advanced Micro Devices rose 13.2% and Broadcom gained 8.8%. Tesla climbed 5.5%, Amazon and Microsoft rose about 3% each, and Alphabet added 1%. The exception was Nvidia, which lost about 4.3%: its board of directors announced an independent investigation into reports that CEO Jensen Huang had been the target of a foreign intelligence operation. The company clarified that the review will be overseen by independent directors and outside counsel, and stated that the board has no reason to believe that national security or trade secrets have been compromised.

Oil, rates and inflation expectations

Falling energy prices also supported investor sentiment: Brent futures fell 5.85% to $92.57 per barrel, while US WTI dropped 4.38% to $86.85. According to the publication, investors were also assessing possible changes to artificial intelligence regulation following the Democratic Party's strong performance in the midterm elections: concerns about stricter rules for data center construction and energy consumption are weighing on forecasts for AI infrastructure spending. The yield on 10-year US Treasury bonds rose 1.9 basis points to 4.878%, and the euro strengthened 0.71% to $1.122. Market attention is now focused on US inflation data, which will shape expectations for the Federal Reserve's further rate decisions.

Europe also rose

European markets closed higher on the same factors. The pan-European STOXX Europe 600 gained 1.26% to 656.52. The leader among major regional markets was Italy's FTSE MIB, up 2.69% to 51,399.88; Spain's IBEX 35 rose 1.93%, Germany's DAX gained 1.73% to 26,267.19, France's CAC 40 added 1.16%, and the UK's FTSE 100 rose 1.02% to 10,782.87.