Wall Street opened higher on Monday as investors looked for signs of easing volatility among tech stocks.
Falling oil prices also supported market sentiment.
This is despite the strong movement in Nvidia shares, which have been rocked by controversy surrounding CEO Jensen Huang.
Investors were also looking ahead to inflation readings and results from major artificial intelligence companies, which are expected to influence trading.
The Dow Jones Industrial Average gained 597 points while the S&P 500 opened 1.16% higher. The Nasdaq Composite rose 1.43%.
Falling oil prices lift stocks
Oil prices fell on Monday, supporting stocks. US WTI crude fell 4.62% to $86.63, while Brent crude declined 4.87% to $93.53.
The gains in stocks followed a mixed session on Friday, when technology stocks recovered some of the losses after Thursday’s AI-driven sell-off.
The Nasdaq Composite rose 1.09%, while the S&P 500 gained 0.31%.
The Dow Jones Industrial Average, however, fell 237.33 points, or 0.46%.
Investor sentiment remained cautious even after the recovery.
Stronger-than-expected US employment data raised the odds of another Fed rate hike in December.
The Democratic Party’s victories in the mid-term elections also fuelled concerns regarding restrictions on data centre construction, energy use and development costs.
Investor concerns in these areas have affected the near-term sentiment for AI companies.
Nvidia investigation adds another worry for AI stocks
Nvidia shares declined around 6.5% as the company opened an investigation into reports that CEO Jensen Huang’s relationship with a businesswoman whom intelligence agencies reportedly suspect of being a Chinese spy.
The development added more pressure to the second most valuable company in the world, which has recently been rocked by the AI trade selloff.
Other semiconductor stocks were relatively subdued. Intel and Marvell Technology edged up 0.1% and 3.6%, respectively, while Qualcomm declined 0.5%.
AMD gained 5.55% after Oppenheimer upgraded the chipmaker.
Meanwhile, shares of major technology companies Microsoft, Alphabet, Meta and Amazon rose between 2% and 5%.
The Philadelphia Semiconductor Index recorded its biggest weekly loss since March 2025 on Friday.
Investors are also watching for signs that major technology companies could reduce their capital expenditure plans, which would potentially affect demand for AI infrastructure.
Inflation data and AI earnings in focus
Investors are preparing for several important events this week, including the release of the October Consumer Price Index on Tuesday and the Producer Price Index on Friday.
The inflation reports could provide further clues about the Federal Reserve’s next interest rate decision.
Corporate earnings will also be closely watched.
AI-related companies CoreWeave, Cisco and Applied Materials are scheduled to report results, offering investors further insight into technology spending and demand for AI infrastructure.
Among other stocks, KKR fell 0.77% even after reporting record quarterly profit.
Constellation Energy gained 1.6% after its adjusted third-quarter profit exceeded expectations.
Berkshire Hathaway’s Class B shares fell 0.42% after the conglomerate reported lower third-quarter profit.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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