Live Markets: Wall Street indexes snap back even as Nvidia tumbles
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WALL STREET INDEXES SNAP BACK EVEN AS NVIDIA TUMBLES
The main US indexes are rallying on Monday with broad-based gains offsetting a selloff in shares in AI chip leader Nvidia as investors pile back into risk assets after a four-week slide in both the S&P 500 .SPX and the tech-heavy Nasdaq .IXIC.
Nasdaq, which confirmed last week that it was in a correction, is rising more than 2% on Monday while the S&P and the Dow .DJI are gaining more than 1% as Wall Street brokerages including Morgan Stanley and UBS said last week's AI-related selloff was overdone. Investors had fled AI-related stocks on fears regulations from a Democrat-controlled Congress would hurt the sector.
Shares in market heavyweight Nvidia NVDA.O are down about 4%, after earlier tumbling more than 8% to their lowest level since March, as an internal investigation into whether CEO Jensen Huang had been targeted by a foreign intelligence effort put his future at the AI chipmaker under scrutiny.
The probe followed a media report that Huang had a close relationship with a Chinese businesswoman who allegedly passed information to Beijing. Huang told Nvidia's employees that he had been unfaithful to his wife, without disclosing details.
Still, Nvidia's drag of more than 20 index points on the S&P 500 is being countered by boosts from other heavyweight stocks including Amazon.com AMZN.O, Apple Inc AAPL.O, Microsoft MSFT.O and Broadcom AVGO.O, a rival to Nvidia. Nasdaq is also boosted by gains of more than 9% in another Nvidia rival Advanced Micro Devices AMD.O.
In the PHLX semiconductor index .SOX, Nvidia is the sole loser, with the rest of the sector rallying sharply.
Among the benchmark's 11 major industry sectors, consumer discretionary .SPLRCD is the biggest gainer, up 3.6%, followed by gains of almost 3% in communications services .SPLRCL and industrials .SPLRCI.
Here is your morning snapshot at 10:16 a.m. ET:
(Sinéad Carew)
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EARLIER ON LIVE MARKETS:
BARGAIN HUNTERS STEP IN AS S&P 500 BULLS LOOK TO DEFEND THE TREND CLICK HERE
HSBC SETS CAUTION ASIDE, SAYS TO BUY EQUITIES AGAIN CLICK HERE
THIS IS NOT LIKE THE DOTCOM BUBBLE CLICK HERE
SIGNS OF AI BENEFITS EMERGING ACROSS EUROPE INC CLICK HERE
BANKS, MINERS SUPPORT THE STOXX AS OIL FALLS CLICK HERE
BEFORE THE BELL: EUROPE FUTURES SOFT, NVIDIA DENTS TECH BOUNCE CLICK HERE
FRAGILE CALM AFTER AI WHIPLASH CLICK HERE
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