Nasdaq Surges 291 Points as Chip and AI Stocks Rebound, Driving US Markets Higher

Mumbai, 20 October 2026: US equities closed mixed on Monday, with the Nasdaq Composite leading gains as semiconductor and artificial intelligence-linked stocks rebounded from last week’s sharp selloff, while the Dow Jones Industrial Average slipped marginally. The technology-heavy index added 1.11%, the S&P 500 rose 0.41%, and the Dow declined 0.07%.

Trading reflected a recovery in growth shares alongside rising Treasury yields, mixed commodity prices, and investor focus on an upcoming wave of corporate earnings from major technology companies. The session followed the S&P 500 and Nasdaq posting their biggest weekly declines since late June, with information technology shares suffering their worst weekly performance since April 2025.

Dow Jones Falls 36 Points as Financials Weigh on Index

The Dow Jones Industrial Average opened at 51,978.58 and closed at 51,966.03, losing 36.38 points or 0.07%. The index touched an intraday high of 52,134.58 and a low of 51,863.80. Financial constituents weighed on the blue-chip benchmark, with shares of JPMorgan Chase falling 1.82%, Wells Fargo dropping 2.47% and Citigroup declining 2.07%. Goldman Sachs slipped 0.62% and American Express eased 0.88% on the downside, while Travelers lost 1.05%. Amazon led gains within the index, rising 4.98%, while IBM added 1.83% and UnitedHealth gained 1.36%. Merck declined 1.58%, Amgen fell 1.75% and Procter & Gamble lost 1.04%.

The session followed a rebound in technology shares that lifted the broader market, even as banking stocks remained under pressure. The Dow’s modest decline contrasted with the gains in the Nasdaq and S&P 500, reflecting its heavier weighting toward financial and industrial constituents that underperformed during the session. Trading in Dow components remained focused on the divergence between growth-oriented technology shares and more traditional cyclical and defensive names, with the index unable to sustain its early intraday advance above the 52,100 level.

S&P 500 Gains 31 Points as Technology Stocks Lead Rebound

The S&P 500 opened at 7,702.77 and ended at 7,690.73, gaining 31.29 points or 0.41%. During the session, the index reached 7,731.18 at its high and 7,684.79 at its low. Consumer discretionary and information technology stocks powered the benchmark, while utilities and real estate lagged. Among notable constituents, Amazon advanced 4.98%, Western Digital jumped 6.09% and Datadog rose 5.36%. Sandisk added 5.53%, Palantir gained 4.36% and Arista Networks rose 3.37%. Seagate Technology added 3.41% and Accenture gained 3.16%. On the downside, Wells Fargo fell 2.47%, Charles Schwab declined 2.59% and Valero Energy lost 2.56%. Deere dropped 2.32%, Citigroup slipped 2.07% and Philip Morris declined 2.02%.

The index’s closing performance came as AI-related shares recovered following their worst weekly decline since late June, with the benchmark recovering from an early session low that briefly took it below the 7,690 mark. The S&P 500’s advance was narrow, with only four of its 11 sectors finishing in positive territory, while the equal-weight counterpart of the index declined 0.3%, indicating that the gains were concentrated in larger-cap growth names rather than broad-based participation across the benchmark.

Nasdaq Surges 291 Points as Chip Stocks Rebound Strongly

The Nasdaq Composite opened at 26,395.29 and closed at 26,430.89, marking a gain of 290.85 points or 1.11%. Its intraday high stood at 26,613.15, while the low was 26,344.67. Technology and growth-oriented shares including Tesla at 3.76%, Amazon at 4.98% and Palantir at 4.36% contributed to the index’s daily performance. Marvell Technology added 4.06%, Micron Technology rose 2.97% and Intel gained 2.43%. Western Digital surged 6.09%, Sandisk climbed 5.53% and Datadog advanced 5.36%. On the downside, Netflix slipped 0.96%, Meta Platforms declined 0.55% and Apple eased 0.15%. T-Mobile US fell 1.89% and Gilead Sciences lost 2.00%.

The technology-heavy benchmark responded to a broad recovery in semiconductor and AI-linked names after eight consecutive sessions of declines in the Philadelphia Semiconductor Index, which had shed approximately 15.7% over that period in its longest losing run since October 2008. The Nasdaq’s advance was its strongest single-day gain since late September, although the index remained below its 50-day moving average and approximately 4.7% below its 52-week high of 27,722.75. Trading volume across Nasdaq-listed shares was elevated as investors repositioned following last week’s sharp technology selloff.

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Russell 2000 Gains 7 Points as Smaller Stocks Edge Higher

The Russell 2000 opened at 2,729.08 and closed at 2,728.30, gaining 6.93 points or 0.25%. It recorded an intraday high of 2,742.40 and a low of 2,725.19. Movements among smaller-cap companies were mixed, with Veradermics rising 12.37%, Praxis Precision Medicines adding 7.61% and JFrog gaining 7.94%. MaxLinear jumped 8.12%, Rambus rose 6.20% and Applied Digital added 6.65%. Kodiak Sciences gained 6.53%, Spyre Therapeutics rose 6.03% and ACMR advanced 5.63%. ImmunityBio fell 8.28%, Almonty Industries declined 10.17% and Bullish dropped 7.02%.

QXO lost 6.63%, Warrior Met Coal fell 5.51% and PBF Energy declined 3.86%. The benchmark’s modest advance reflected selective buying in healthcare and technology names as broader market trading remained focused on the recovery in larger-cap growth shares. The Russell 2000 remained well below its 52-week high of 3,069.71, with small-cap shares continuing to lag the performance of larger-cap benchmarks during the session.

S&P 100 Rises 23 Points as Large-Cap Shares Gain

The S&P 100 opened at 3,831.62 and finished at 3,830.95, recording a gain of 23.33 points or 0.61%. The index traded between 3,825.87 and 3,851.28 during the session. Movements in major large-cap constituents including Amazon at 4.98%, Tesla at 3.76% and Nvidia at 1.38% contributed to its daily performance as markets responded to the rebound in technology and consumer discretionary shares.

Microsoft added 0.84% and Alphabet rose 1.05%, while JPMorgan declined 1.82% and Wells Fargo fell 2.47%, limiting the index’s upside. The S&P 100’s gain reflected the concentration of technology and consumer discretionary strength among the largest US companies, with the index’s advance slightly outpacing the S&P 500’s 0.41% rise as mega-cap growth shares outperformed the broader market.

Dow Composite Falls 72 Points as Transport Utilities Decline

The Dow Jones Composite Average opened at 16,264.54 and closed at 16,193.56, losing 71.97 points or 0.44%, after moving between 16,190.27 and 16,264.54. The Dow Jones Transportation Average ended at 19,701.19, compared with an opening level of 19,901.80, representing a 0.90% decline.

The transportation index traded between a high of 19,904.65 and a low of 19,678.53 during the session. The Dow Jones Utility Average closed at 1,063.28, falling 1.73% from its opening level of 1,081.80, after trading between 1,059.96 and 1,081.80. Weakness in transportation and utility constituents reflected the session’s broader divergence, with defensive sectors underperforming growth-oriented areas as rising Treasury yields weighed on rate-sensitive utility shares. The utility index’s decline was its steepest single-day drop in more than two weeks, while the transportation gauge remained approximately 20.6% below its 52-week high of 24,825.70.

SOX Gains 179 Points as Semiconductor Stocks End Losing Streak

The Philadelphia Semiconductor Index opened at 11,314.81 and closed at 11,316.34, gaining 179.06 points or 1.61%. Its intraday high was 11,466.12, while the low was 11,293.45. Semiconductor-related constituents such as Intel at 2.43%, Micron Technology at 2.97% and Marvell Technology at 4.06% contributed to the sector benchmark’s daily performance amid a rebound from the index’s longest losing run since October 2008. Western Digital added 6.09%, Sandisk rose 5.53% and Broadcom gained 1.78%. Nvidia advanced 1.38%, AMD rose 1.76% and Lam Research added 3.13%. Applied Materials gained 0.93% and Qualcomm rose 0.83%.

On the downside, Texas Instruments slipped 0.12% and Analog Devices declined 0.28%. The SOX’s advance snapped an eight-session losing streak during which the index fell approximately 15.7%, with the recovery driven by a broad return to semiconductor shares following last week’s sharp selloff. The index remained approximately 22.8% below its 52-week high of 14,655.29, although it has gained 57.2% year-to-date.

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NYSE Composite Falls 122 Points as Financial Shares Decline

The NYSE Composite Index opened at 24,088.62 and closed at 23,967.07, recording a loss of 121.56 points or 0.50%. The index traded between 23,969.82 and 24,099.44 during the session. Movements across financial and energy segments contributed to its performance as rising Treasury yields and mixed oil prices shaped broader US equity trading.

Banking stocks remained under pressure, with the KBW Nasdaq Bank Index extending its longest losing streak since 2008, having declined for six consecutive weeks and lost approximately 11% since early September. The NYSE Composite’s decline reflected the broad-based weakness in financial shares, which outweighed gains in technology and consumer discretionary names listed on the exchange. The index remained approximately 3.6% below its 52-week high of 24,866.75.

S&P MidCap 400 and SmallCap 600 Trade Mixed Today

The S&P MidCap 400 opened at 3,615.78 and closed at 3,615.82, moving 0.040 points or 0.0011%, with an intraday range of 3,609.84 to 3,635.45. The S&P SmallCap 600 opened at 1,657.65 and ended at 1,652.09, losing 1.41 points or 0.085%, after trading between 1,651.55 and 1,662.63. The two benchmarks reflected divergent movements among mid- and small-cap shares as the broader market’s technology-led recovery failed to lift all segments uniformly.

The MidCap 400’s marginal gain contrasted with the SmallCap 600’s slight decline, with mid-cap shares finding support from industrial and technology constituents while small-cap names faced pressure from financial and energy components. Both benchmarks remained below their 52-week highs, with the MidCap 400 approximately 8% below its peak and the SmallCap 600 approximately 9.8% below its high.

AI Stock Rebound and Earnings Drive Market Direction

The principal market catalyst was the rebound in semiconductor and AI-linked stocks after last week’s severe selloff, which had pushed the Nasdaq to its worst weekly performance since June with a 4.5% decline, while the S&P 500 lost nearly 2% and information technology shares shed more than 6%. The recovery was supported by analyst actions, including an upgrade of Intel to neutral from underweight and a rating increase for CoreWeave to buy from neutral, although the latter reversed earlier gains to close slightly lower at 0.44%.

Amazon rose 4.98% after being named a top pick, contributing to the consumer discretionary sector’s leadership. Investor attention also turned to a busy earnings calendar featuring Meta Platforms and Tesla on Wednesday, SpaceX on Tuesday and Netflix later in the week, alongside results from General Motors, GE Aerospace and Procter & Gamble. Treasury yields rose as equity markets stabilised, with the 10-year yield climbing to 5.15%, while oil prices were mixed after attacks on Saudi energy infrastructure and a strike on a Russian oil terminal.

Trading remained focused on whether upcoming corporate results can justify the heavy capital spending on artificial intelligence infrastructure, with hedge funds having sold technology stocks at the fastest pace on record last week. The session also reflected global developments, including China’s third-quarter GDP growth accelerating to 4.5% from 4.3% in the prior quarter, and political unrest in France that weighed on European equities.

VIX Falls as Volatility Eases From Last Week’s Four-Month High

The CBOE Volatility Index declined during the session, easing from last week’s level above 22, which had marked its highest reading in four months during the peak of the AI-related selling pressure.

The index measures expected volatility in the S&P 500 over the coming 30 days. Its movement coincided with the rebound in equity benchmarks and a partial recovery in technology shares, as market participants assessed the sustainability of the AI trade ahead of major earnings reports.

The VIX remained above its long-term average, reflecting continued uncertainty surrounding the outlook for technology spending and interest rates. The CBOE Nasdaq Volatility Index and the CBOE S&P 500 3-Month Volatility Index also eased alongside the broader decline in volatility expectations.

Consumer Discretionary Gains 2.7% as Utilities Fall 2%

Performance across the 11 S&P 500 sectors was mixed, with only four groups finishing higher. Consumer discretionary recorded the strongest move at 2.73%, while utilities declined 1.97%. Information technology rose 1.85% and communication services added 0.6%, while materials posted a marginal gain.

Financials fell 0.62%, health care slipped 0.59%, and industrials, energy, consumer staples and real estate also ended lower. The sector movements followed the technology-led rebound, with defensive and rate-sensitive groups underperforming as Treasury yields rose.

Consumer discretionary’s advance was driven by Amazon and Tesla, while information technology found support from semiconductor and software names including Datadog and Western Digital. Utilities’ decline reflected pressure from higher bond yields, which reduce the appeal of dividend-paying stocks, while real estate also weakened amid the rise in long-term rates.

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Amazon Gains 5% as Tesla Rises 3.8% in Magnificent Seven

Among the Magnificent Seven, Amazon moved 4.98%, Tesla changed 3.76%, Nvidia gained 1.38%, Alphabet rose 1.05% and Microsoft added 0.84%. Meta Platforms declined 0.55% and Apple eased 0.15%. Their daily movements contributed to the performance of major US equity benchmarks, with Amazon and Tesla providing the strongest support to consumer discretionary and growth-oriented indices. Amazon’s advance followed its designation as a top pick, while Tesla’s gain came ahead of its Wednesday earnings report.

Meta and Apple’s modest declines limited the upside for the communication services and information technology sectors, respectively. The collective movement of the seven largest technology companies remained a key driver of index performance, with their weighted influence determining the direction of the Nasdaq and S&P 500.

Semiconductor Stocks Gain 1.6% as Financials and Energy Decline

Semiconductor stocks were higher, with the Philadelphia Semiconductor Index moving 1.61%. Financial stocks recorded losses, as the financials sector declined 0.62% and the KBW Nasdaq Bank Index extended its losing streak. Energy stocks moved lower alongside mixed crude oil prices, with the energy sector finishing in negative territory. AI and growth stocks were higher, with movements among Palantir at 4.36%, Datadog at 5.36% and Marvell at 4.06% contributing to the technology-heavy indices.

The divergence between semiconductor and financial shares reflected the session’s rotation back toward growth-oriented names following last week’s technology selloff, while banks remained under pressure from rising yields and concerns about credit conditions. Energy shares tracked the mixed movement in crude oil, with WTI rising while Brent declined.

NAHB Housing Index Falls to 29 as Builder Confidence Drops

The latest economic data showed the National Association of Home Builders Housing Market Index at 29 in October, down three points from the prior reading and its lowest level since June 2012.

The index remains well below the 50-point threshold that signals positive sentiment. Buyer traffic fell to its lowest level since April 2012, excluding the pandemic’s onset in April 2020. The release provided the latest information on housing market conditions during the session, with mortgage rates above 7% and elevated construction costs weighing on demand.

The NAHB reported that 43% of builders cut prices to attract buyers, while two-thirds offered sales incentives, squeezing profit margins. Confidence declined across the South and West regions. The data underscored the pressure on the housing sector from higher interest rates and affordability constraints, with investors awaiting upcoming government reports on housing starts and pending home sales for further direction.

10-Year Treasury Yield Rises to 5.15% as Rates Shift

The Federal Reserve remained a key focus as markets assessed the policy outlook ahead of the central bank’s end-of-month meeting. Market pricing reflected an 83% probability that the Fed holds rates steady, although analysts at one major bank maintained the possibility of an October increase.

The 2-year US Treasury yield stood at 4.73%, while the 5-year yield was 4.93%. The 10-year Treasury yield stood at 5.15%, and the 30-year yield was 5.47%. The yield curve steepened as rising long-term yields affected Treasury trading amid stabilising equity markets. The 10-year yield had briefly touched 5.33% last Wednesday after hotter-than-anticipated Consumer Price Index data showed a 0.6% monthly increase, the fastest pace in five months, with the year-over-year gain at 3.7%.

Investors also monitored upcoming auctions for $13 billion in 20-year bonds and Treasury Inflation-Protected Securities. Fed Chair Kevin Warsh offered no hints on interest rates during recent remarks, maintaining focus on price stability.

WTI Crude Rises 2.2% to $103.66 as Brent Falls

Brent crude traded at $109.55, changing -0.28%, while WTI crude stood at $103.66, moving 2.22%. Gold traded at $4,143.91, changing -0.5%, while silver moved -0.04% to $56.974. Copper changed -0.1% to $14,385 per metric ton. The commodity moves followed attacks by Yemen’s Houthis on Saudi energy infrastructure and a Ukrainian strike on a Russian oil terminal, alongside a firmer dollar and elevated Treasury yields that weighed on precious metals.

Oil markets remained sensitive to developments around the Strait of Hormuz after Iran reported another tanker had hit a mine, with shipping and insurance costs keeping prices for actual delivery higher. Gold’s decline reflected the rise in Treasury yields and the dollar’s advance, which reduced the appeal of the non-yielding metal. Copper eased as rising inventories and the end of a strike at a major Chilean mine eased supply concerns.

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Dollar Index Rises 0.2% to 102 as Euro Weakens

The US Dollar Index moved 0.2% to 102.00. EUR/USD stood at 1.1239, USD/JPY traded at 158.02, and GBP/USD was at 1.3327. Currency movements followed the session’s rate backdrop and the partial recovery in risk appetite, with the dollar gaining against the euro amid French political unrest while remaining little changed against the yen.

The euro weakened as nationwide protests in France over the cost of living weighed on sentiment toward the eurozone’s second-largest economy. The yen held steady against the dollar despite the rise in US yields, with traders monitoring the Bank of Japan’s policy stance. Bitcoin rose 1.9% to $82,386.78, recovering from overnight lows around $80,600.

The closing session was shaped by a rebound in semiconductor and AI-related shares following last week’s sharp selloff, alongside rising Treasury yields and mixed commodity prices. The Nasdaq led gains while the Dow slipped, and sector performance was mixed with consumer discretionary outperforming and utilities lagging. These figures provide a factual summary of the session’s key market developments.