Nvidia plunges as tech shares rebound, oil slides
US stocks rallied on Monday, as a drop in oil prices tempered inflation fears and helped the S&P 500 rebound from its biggest weekly drop since April 2025, and tech shares jumped even as AI heavyweight Nvidia slumped with controversy swirling around CEO Jensen Huang. Last week, stocks slumped after a sweeping victory by Democrats in the US midterm elections fed concerns that new regulations could…
On Monday, US stocks surged as falling oil prices helped alleviate inflation concerns and boosted the S&P 500 after its steepest weekly decline since April 2025. Tech shares, however, continued their upward trend despite Nvidia experiencing a significant drop, driven by controversy surrounding its CEO Jensen Huang. The AI sector's future remained uncertain as investigations into potential foreign intelligence targeting Huang unfolded.
Despite these challenges, the broader market showed resilience, with the Dow Jones Industrial Average up 2.2%, the S&P 500 gaining 2.4%, and the Nasdaq Composite advancing 2.7%. Analysts attributed the rally to the drop in crude oil prices, which eased inflation worries. Federal Reserve expectations remained high, with a rate hike at their December meeting still projected to occur.
Chipmakers, including Nvidia, experienced fluctuations, but broader tech stocks, such as Broadcom and Advanced Micro Devices, outperformed. Inflation data and the upcoming Consumer Price Index report for October were also on investors' radar, as they awaited further clues on monetary policy direction.
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