Traders work on the floor of the American Stock Exchange (AMEX) at the New York Stock Exchange (NYSE) in New York, US, on Friday, Nov. 6, 2026.
Michael Nagle | Bloomberg | Getty Images
Stocks surged on Monday, boosted by a decline in oil prices as well as gains in technology shares after last week’s volatility.
The Dow Jones Industrial Average popped 1,113 points, or 2.2%, supported by gains in stocks such as Goldman Sachs and Caterpillar. The S&P 500 rose 2.3%, while the Nasdaq Composite gained 2.5%.
With Monday’s rally, the Dow is now above the level it closed on Election Day. The S&P 500 and tech-heavy Nasdaq still remain slightly below, however.
Oil prices fell on Monday, lifting investor sentiment. U.S. West Texas Intermediate futures dropped 3% to around $87 per barrel. International benchmark Brent slid 4% to roughly $93 per barrel.
Friday’s market partially rebounded from Thursday’s brutal AI-driven sell-off, as chip stocks recovered on renewed buying. However, concerns linger in the wake of the Democrats’ strong midterm results, with investors fearing that tighter regulations on data center construction, energy use, and development costs could slow the AI infrastructure boom.
The tech sector also focused on the bombshell announcement Sunday that Nvidia’s board of directors is opening an investigation into co-founder and CEO Jensen Huang’s relationship with a businesswoman who U.S. intelligence agencies say is a Chinese spy. Nvidia shares were last down 5%.
“Magnificent Seven” names were higher contrary to Nvidia. Amazon gained 3%, while Tesla and Alphabet climbed 5% and 2%, respectively. Microsoft also added 2%.
Other chip stocks advanced as well, with Broadcom popping 8% and Advanced Micro Devices jumping 12%. The iShares Semiconductor ETF (SOXX) — which dropped around 13% last week — rose more than 6%.
The recent chip sell-off was “overdone,” said Jay Hatfield, CEO at Infrastructure Capital Advisors. The turmoil was still “partially correct,” he added, given that there “definitely is a policy overhang from the Democrats in both the short run, but, more importantly, in the long run from ’28.” To be sure, he believes data centers are ultimately “going to get built” in the U.S.
For the broader market, Hatfield said that “it’s not like the coast is clear” with Monday’s bounce. In fact, he anticipates the S&P 500 will be rangebound through the end of the year.
“There are still a lot of overhangs on the market,” the CEO said, pointing to elevated oil prices as a result of the Middle East conflict as well as the Federal Reserve’s interest rate outlook.
This week, investors are looking ahead to key AI-related earnings — CoreWeave, Cisco and Applied Materials are all on deck — as they assess the outlook for tech and whether the recent selloff has further to run.
They’ll also watch for the releases of both the consumer price index on Tuesday and the producer price index on Friday, looking for clues on the Fed’s next move.
