Nasdaq Jumps 259 Points to 26,399 as Intel Surges 5.5% and AI Stocks Rebound After Brutal Selloff

Mumbai, 19 October 2026: The Nasdaq Composite staged a powerful recovery in early Monday trading, surging 259.41 points or 0.99% to 26,399.44 as investors aggressively returned to beaten-down technology and artificial intelligence stocks following last week’s severe rout.  

The tech-heavy index’s rebound came after it suffered its worst weekly performance since June, tumbling 4.5% and snapping a four-week winning streak. Meanwhile, the S&P 500 gained 40.96 points or 0.53% to 7,700.40, while the Dow Jones Industrial Average slipped 100.15 points or 0.19% to 51,902.26, reflecting a sharp rotation back into growth-oriented sectors at the expense of defensive plays. 

The opening bell rally marked a dramatic reversal from Friday’s carnage, when the Nasdaq plunged 2.1% and the S&P 500 shed 1.2% amid escalating fears over the sustainability of AI infrastructure spending. Monday’s session saw semiconductor stocks leading the charge, with the iShares Semiconductor ETF rebounding nearly 3% after a 12% decline last week.  

The Dow’s modest decline underscored the divergent trajectories within the market, as energy and consumer staples stocks—October’s previous winners—gave up ground while technology reclaimed its leadership position. 

Intel’s 5.5% Surge on JPMorgan Upgrade Lifts Semiconductor Sector as AMD, Micron Rally Over 3% 

Intel Corporation emerged as the standout performer among Dow components, surging 5.5% to $94.79 after analysts at JPMorgan upgraded the chipmaker’s rating to neutral from underweight. The upgrade, which maintained a price target of $85, cited improved execution and competitiveness in the company’s core client and datacentre compute markets.  

The analysts noted that Intel’s stock had declined 36% from its late June peak, bringing it closer to their target and improving the risk-reward profile. The upgrade proved contagious across the semiconductor space, with Advanced Micro Devices climbing 3.95%, Micron Technology gaining 3.93%, and Broadcom advancing 2.34%. The Philadelphia Semiconductor Index components broadly participated in the rally, with Lam Research up 4.48%, Applied Materials rising 3.58%, and KLA Corporation adding 3.41%. Intel’s volume surged to 12.371 million shares in early trading, well above its average, signalling intense investor interest in the upgraded name. 

CoreWeave Rebounds 4% After 25% Weekly Plunge as Goldman Sachs Upgrade Calms AI Financing Fears 

CoreWeave, the Nvidia-backed cloud computing provider that became the epicentre of last week’s AI selloff, rebounded approximately 4% in early trading after receiving an upgrade from Goldman Sachs. The stock had plummeted 25.21% last week—its biggest one-week drop since November 2025—amid mounting concerns over the company’s debt obligations and the broader sustainability of AI infrastructure financing.  

The distress in CoreWeave’s credit default swaps, which spiked to 1,200 basis points, had raised alarms across corporate bond markets and triggered a broader reassessment of AI-related risk. Goldman Sachs traders noted on Friday that “AI Credit Spreads and hyperscalers specifically are at the widest levels of the year,” adding that “the last time spreads were nearly this high, the underlying equities were 15% lower.”  

The upgrade provided temporary relief, though CoreWeave shares remain nearly 57% below their 52-week high, reflecting the deep scars left by last week’s rout. 

Also Read: What Is the New York Stock Exchange (NYSE)?

Nvidia Gains 0.64% to $185 as Magnificent Seven Mega-Caps Show Mixed Performance 

Nvidia, the world’s most valuable public company and bellwether for the AI trade, rose 0.64% in early trading after ending Friday’s session down 1.5%. The chip giant’s modest gain belied the broader recovery in AI-linked names, with Palantir Technologies advancing 2.57%, Arm Holdings adding 2.39%, and Marvell Technology surging 4.83%. Among the Magnificent Seven, Apple edged up 0.19%, Microsoft gained 0.53%, Alphabet rose 0.70%, and Amazon climbed 2.32%, while Meta Platforms slipped 1.15% and Netflix declined 1.11%.  

Tesla bucked the mixed trend among mega-caps, rising 1.34% ahead of its Wednesday earnings report. The Roundhill Magnificent Seven ETF gained 0.5% after declining 2% in the previous session, suggesting cautious optimism returning to the cohort that has driven the bulk of this year’s market gains. 

Hedge Funds Sold Tech Stocks at Record Pace Last Week, Goldman Sachs Data Reveals 

The severity of last week’s technology selloff was underscored by Goldman Sachs data showing that hedge funds sold technology stocks at the fastest pace on record. The S&P 500 information technology sector, which shed more than 6% for the week ended October 16, was “by far the most net sold global sector,” according to the investment bank. The de-grossing represented the largest percentage in two months and the largest percentage of net selling since record-keeping began in 2016. The selling was “driven by long and to a lesser extent short sales,”  

Goldman noted, indicating that portfolio managers were actively reducing exposure rather than merely hedging. Information technology posted its worst weekly performance since April 2025, while the communication services and consumer discretionary sectors also underperformed as investors questioned the return on massive AI capital expenditures. The record liquidation explains the ferocity of Friday’s decline and the magnitude of Monday’s rebound as oversold conditions attracted bargain hunters. 

S&P 500’s 0.53% Gain Masks Sector Rotation as Defensive Stocks Give Back October Gains 

The S&P 500’s advance to 7,700.40 belied a significant rotation beneath the surface, with October’s strongest performers surrendering ground to technology shares. Among the 100 best-performing S&P 500 stocks through Friday, approximately 91% were trading lower in premarket action, while 77% of October’s worst performers were heading higher.  

The dynamic reflected a reversal of the defensive rotation that had characterized the prior week, when energy, utilities, and consumer staples provided shelter from the technology rout. Exxon Mobil slipped 0.11%, Chevron declined 0.22%, and Procter & Gamble fell 0.79%, while Coca-Cola dropped 0.16% and Colgate-Palmolive shed 1.21%.  

The iShares Semiconductor ETF’s 3.6% premarket gain contrasted sharply with the 12% decline it suffered last week, highlighting the violent nature of the rotation.  Market breadth improved markedly, with advancing stocks outnumbering decliners by a wide margin across both the Nasdaq and New York Stock Exchange. 

AI Capex Concerns Trigger 4.5% Nasdaq Weekly Drop as Anthropic Revenue Growth Raises Questions 

The trigger for last week’s technology rout stemmed from mounting scepticism over the pace of AI infrastructure spending and its financing. Concerns intensified after reports that Anthropic’s third-quarter revenue totalled $16.8 billion, up from $11.6 billion in the second quarter, but the growth trajectory raised flags among investors about the sustainability of the AI buildout.  

Goldman Sachs traders observed that “the widening across the complex has forced investors to confront what happens as AI spending growth slows,” adding that “AI Capex has likely peaked and financing, sustainability, and returns on capital have become the debate rather than the next near-term earnings revision.” The firm also noted that pessimism was increasing, market breadth was low, and Friday saw the second-highest amount of put options traded this year, behind only June. The Nasdaq’s 4.5% weekly decline and the S&P 500’s 2% drop represented the sharpest weekly losses since late June, while the Dow managed a 0.7% gain, reflecting its lower technology weighting. 

Also Read: How to invest in US stocks

Oil Prices Slip 1% as Trump Waives Russian Sanctions, Easing Inflation Concerns 

Oil markets provided a supportive backdrop for equities on Monday, with Brent crude falling 1.47% to $108.20 per barrel and West Texas Intermediate declining 0.88% to $100.50. The pullback came after President Donald Trump signed an executive order late Friday putting new sanctions against Russia on hold just days before they were due to take effect, potentially allowing increased Russian energy exports to reach global markets.  

Secretary of State Marco Rubio indicated the president would take up to 60 days to assess the impact on the global economy. The waiver drew disappointment from Ukraine but offered relief to investors concerned about energy-driven inflation.  

Geopolitical tensions remained elevated, with ten attacks on commercial vessels reported in and near the Strait of Hormuz last week, making October the busiest month for shipping attacks since March. Longer-dated oil futures have begun ratcheting higher on expectations that energy infrastructure disruptions may persist well into 2027. 

Treasury Yields Ease to 5.085% as Bond Market Stabilisation Supports Equity Valuations 

The 10-year Treasury yield slipped more than 1 basis point to 5.0854%, providing modest support for equity valuations. The 30-year Treasury yield also declined 1 basis point to 5.4242%, while the 2-year note, which closely tracks Federal Reserve policy expectations, held steady at 4.7315%.  

The yield on the 10-year note had briefly touched 5.33% last Wednesday following hotter-than-anticipated Consumer Price Index data, sparking concerns about prolonged monetary tightening. Analysts noted that stabilising bond yields would be critical for equities to sustain their recovery, as the most intense phase of yield spikes had compressed forward price-to-earnings multiples by approximately 3 points for global equities.  

The bond market’s calm on Monday complemented the equity rebound, with lower borrowing costs easing pressure on the financing of AI data centres and consumer credit. 

Cleveland-Cliffs Surges 11% on Strong Outlook as Steelmaker Projects $4 Billion EBITDA 

Cleveland-Cliffs Inc. emerged as the top gainer among S&P 500 components, surging 11.45% to $13.53 after the steelmaker provided an outlook that far exceeded analyst expectations. The company projected fiscal 2026 fourth-quarter adjusted EBITDA of approximately $715 million, above the $683.6 million consensus estimate, and forecast fiscal 2027 adjusted EBITDA exceeding $4 billion, easily surpassing the $2.54 billion analyst consensus.  

Chief Executive Officer Lourenco Goncalves stated that the company expects fourth-quarter adjusted EBITDA to increase further despite typical seasonality and planned maintenance outages. In the third quarter, Cleveland-Cliffs reported adjusted EBITDA of $612 million and adjusted earnings of $0.28 per share, though revenue of $5.6 billion came in slightly below expectations.  

The company also highlighted debt reduction initiatives, with amplified free cash flow and property sale proceeds expected to drive major debt reduction in the fourth quarter. 

Disc Medicine Jumps 32% on Phase 3 Trial Results, Leading Broad Biotech Rally 

Disc Medicine Inc. led all Nasdaq gainers with a stunning 32.64% surge to $75.39 after announcing it would host a webcast to discuss topline results from the APOLLO Phase 3 trial of bitopertin in erythropoietic protoporphyria.  

The biopharmaceutical company’s rally reflected growing optimism in the biotechnology sector, with Moderna surging 8.30% to $236.11, Iovance Biotherapeutics climbing 7.34% to $14.62, and Veradermics jumping 9.07% to $118.57. The broader Russell 2000 biotechnology complex participated in the advance, though the small-cap index itself declined 1.66% to 2,721.37 as regional banks and industrial names weighed on performance.  

The biotech rally contrasted with the Russell 2000’s overall weakness, highlighting the sector-specific nature of Monday’s trading dynamics. 

Also Read: US Stock Market Timings 

Sandisk Surges 6.57% as Memory Chip Stocks Rebound, Western Digital Gains 5.99% 

Memory chip manufacturers staged a robust recovery following last week’s sharp declines, with Sandisk Corporation surging 6.57% to $1,384.63 and Western Digital climbing 5.99% to $351.90. Seagate Technology added 4.50% to $667.76 and Micron Technology rose 3.93%. The Roundhill Memory ETF rebounded 4.5% following a nearly 6% decline on Friday.  

The recovery in memory stocks reflected the broader semiconductor rebound, though analysts have cautioned that oversupply concerns and potential competition from Samsung could pressure pricing. The memory segment had been among the hardest-hit areas during last week’s AI selloff, as investors questioned whether data centre buildout plans would translate into sustained demand for high-bandwidth memory products. 

Strategy Rebounds After $193 Million Preferred Stock Buyback, Bitcoin Holdings Reach 848,517 

Strategy, the enterprise software company that has become the largest corporate holder of bitcoin, rose in early trading after disclosing that it repurchased $193 million of its Stretch preferred shares last week alongside $22 million in bitcoin purchases.  

The company also increased its authorised stock buyback programme from $2 billion to $3 billion and added 267 bitcoins, bringing its total holdings to 848,517. The disclosure came after Strategy’s common stock fell nearly 10% on Friday, its worst single-day performance in nearly eight months.  

Index provider MSCI recently announced new eligibility rules that could lead to Strategy’s removal from its global stock indices, with a final list of affected companies due on November 11. Bitcoin traded around $82,500, up from overnight lows near $80,600, providing a tailwind for cryptocurrency-linked equities including Coinbase Global, Marathon Holdings, and Riot Platforms. 

Earnings Deluge Awaits as Meta, Tesla, Netflix Report This Week, Testing AI Narrative 

Investors are bracing for a pivotal week of corporate earnings that could determine whether Monday’s rebound marks a sustainable recovery or merely a temporary reprieve. Meta Platforms and Tesla are scheduled to report quarterly results on Wednesday, with options pricing implying a 6% swing in either direction for Meta shares.  

Netflix reports Tuesday afternoon, with traders anticipating a move of up to 9% following the streaming giant’s 25% year-to-date decline. IBM, General Motors, Lam Research, Texas Instruments, and Procter & Gamble are also on the earnings calendar, while aerospace and defence names including Lockheed Martin, RTX, and Northrop Grumman will provide insight into industrial demand.  

Alphabet, Microsoft, and Amazon report next week, followed by Apple on November 2. The results will be scrutinised for evidence that AI investments are translating into revenue growth and profitability, a question that has weighed heavily on sentiment since last week’s selloff. 

Market Breadth Improves as Advancers Outpace Decliners Across Major Exchanges 

Monday’s rally exhibited broad participation, with advancing stocks significantly outnumbering decliners across both the Nasdaq and New York Stock Exchange. The improvement in market breadth contrasted sharply with last week’s narrow selling pressure, when technology stocks bore the brunt of liquidation while defensive sectors held firm.  

The iShares Semiconductor ETF’s 3.6% premarket advance suggested that the worst of the semiconductor-specific selling may have passed, though the fund remains well below its recent highs. Trading volume across the Nasdaq reached 1.247 billion shares in early action, while S&P 500 volume totalled 194.4 million shares.  

The CBOE Volatility Index, commonly known as the market’s fear gauge, retreated from elevated levels, reflecting easing anxiety among options traders. 

Also Read: What Are Fractional Shares? 

European Markets Decline as Political Uncertainty Weighs on Sentiment 

While US equities rallied, European markets moved in the opposite direction, with the Stoxx 600 declining 0.82% and France’s CAC 40 falling 1.35% amid violent demonstrations over the cost of living during the weekend. The UK’s FTSE 100 slipped 0.94% and Germany’s DAX lost 1.1%. The divergence highlighted the contrasting drivers affecting markets on either side of the Atlantic, with US investors focused on the AI trade recovery while European investors contended with political instability, widening sovereign bond spreads, and concerns about government finances. Asian markets were mixed, with South Korea’s Kospi rising 1.76% and Australia’s S&P/ASX 200 gaining 0.44%, while Japan’s Nikkei 225 fell 0.62%. 

Monitor Wednesday’s Meta and Tesla earnings for confirmation that AI-related capital expenditure is translating into revenue growth, as this week’s results will likely determine whether Monday’s rebound sustains or fades. Track the 10-year Treasury yield around 5.085% and Brent crude near $108 for signals on inflation and consumer pressure. Watch semiconductor ETF levels, particularly the $515 resistance for SOXX, as a key technical indicator of the technology sector’s recovery momentum. 

Source 

• https://www.nasdaq.com/ 

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• https://www.nasdaq.com/market-activity/index/comp 

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• https://www.nasdaq.com/market-activity/index/sox 

• https://www.cboe.com/tradable_products/vix/