09.11.202619:06:35UTC+00Wall Street Rebounds on Tech Dip Buying

US stock indices rebounded on Monday from last week’s sharp selloff, as renewed dip buying helped drive the market to its strongest session since April. The S&P 500 climbed more than 2%, the Dow advanced over 1,000 points, and the Nasdaq led the major averages with a gain of more than 3%.

Chipmakers bounced back after Friday’s steep decline, which followed Democrats’ consolidation of control in Congress and stoked speculation about potential pressure on returns for AI companies, reinforcing existing worries about a slowdown in the sector’s growth. AMD (+13%) was upgraded to “outperform” at Oppenheimer. Broadcom and Lam Research each rallied nearly 9%, Micron gained about 6%, and Applied Materials surged more than 11.5% ahead of its earnings report this week.

Nvidia, however, fell 5% after CEO Jensen Huang acknowledged an affair with an individual suspected of working as a Chinese spy, a development that could prompt Congress to consider tighter export controls on the company’s chips.

Among the major cloud and AI “hyperscalers,” Alphabet (+2%) continued rolling out a broader lineup of AI chips. Meta jumped 5%, Microsoft rose 2.5%, and Amazon added 3.5%.