Wall Street Gains as Tech, AI Stocks Surge/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. markets rebounded Monday, led by Big Tech and AI stocks like Nvidia and Micron. Optimism over a possible end to the government shutdown boosted investor confidence, though uncertainty remains around healthcare subsidies. Wall Street continues to watch earnings and interest rate signals amid weak economic data.
Tech Rally and Shutdown Optimism: Quick Looks
- S&P 500 gains 1.1%, Dow rises 261 points
- Nasdaq leads with 1.6% surge on tech strength
- Nvidia, Micron, Super Micro Computer post early gains
- Senate nears bipartisan deal to end government shutdown
- Healthcare stocks dip amid subsidy uncertainty
- Over 90% of S&P 500 companies have reported earnings
- Fed interest rate path still uncertain as data delayed
- Global markets also rally on tech and AI enthusiasm
Deep Look
Big Tech Leads Wall Street Rebound as Shutdown Deal Gains Ground
Wall Street opened the week with strong gains Monday, led by a surge in technology and artificial intelligence-related stocks. The rebound followed last week’s market dip and coincided with growing optimism that U.S. lawmakers are nearing an agreement to end the longest government shutdown in American history.
The S&P 500 rose 1.1% in early trading, recovering much of last week’s losses. The Nasdaq composite jumped 1.6%, outperforming other major indexes, while the Dow Jones Industrial Average climbed 261 points. Tech stocks, which had been under pressure during the recent downturn, rebounded sharply, with chipmakers and AI-focused companies leading the charge.
Tech and AI Stocks Reignite Investor Confidence
Nvidia, a key driver of the AI investment wave, led the market’s recovery after taking a hit last week. Micron Technology gained over 5% before the market opened, while Seagate Technology and Super Micro Computer each climbed around 4.5%. Investors appeared to regain confidence in the AI sector after pulling back from overheated valuations.
The resurgence in Big Tech is part of a broader recalibration after fears of a tech bubble momentarily rattled the markets. However, strong earnings reports and solid growth from major players continue to support bullish sentiment.
Shutdown Progress Boosts Market Mood
Investor sentiment was further boosted by developments in Washington. A bipartisan agreement to end the federal shutdown began taking shape in the Senate over the weekend, with a procedural vote signaling progress. Although the deal lacks a clear resolution on extending health care tax credits, it marked a potential end to the budget impasse that has disrupted economic data releases and policy clarity.
Futures trading early Monday reflected growing optimism: S&P 500 futures rose 0.9%, Nasdaq futures surged 1.5%, and Dow futures gained 0.4%.
Health Insurers Under Pressure
Not all sectors shared in the early rally. Health insurance stocks lagged behind as uncertainty loomed over the fate of expiring Affordable Care Act tax credits. The Senate agreement calls for a possible vote on the credits in mid-December, but a final decision remains elusive.
Major insurers including Cigna, UnitedHealth Group, and Humana saw early losses of between 1% and 2%. Some smaller health care firms dropped as much as 9%, reflecting growing investor unease about revenue impacts if subsidies are not extended.
President Donald Trump added to the uncertainty with a vague social media post suggesting that subsidies for “money-sucking” insurance firms should instead be sent directly to individuals. The lack of policy clarity has left insurers in limbo.
Earnings Season Nearing Completion
With over 90% of S&P 500 companies having reported quarterly earnings, analysts are digesting better-than-expected results, especially from the technology sector. According to FactSet data, most companies have exceeded Wall Street’s profit expectations, lending support to high stock valuations.
The earnings season has taken on heightened significance as the government shutdown delays key economic indicators, such as inflation and employment data. These indicators are critical for the Federal Reserve and investors alike in determining the path of interest rates and broader economic health.
Fed Policy in Focus
The Federal Reserve remains cautious despite market expectations for further rate cuts. The central bank has already lowered its benchmark interest rate twice in 2025 in response to signs of weakening employment, but officials have warned against additional cuts if inflation remains above the 2% target.
Without current data, market participants are relying heavily on corporate earnings and global trends to gauge economic momentum. Traders still broadly expect the Fed to cut rates again at its December meeting, betting that inflation will moderate and economic conditions will warrant further easing.
Global Markets Echo U.S. Optimism
Markets overseas also responded positively to the tech rebound and easing fears about prolonged U.S. government dysfunction.
- Germany’s DAX rose 1.7%
- France’s CAC 40 gained 1.3%
- UK’s FTSE 100 increased by 1%
- South Korea’s Kospi surged 3%, led by chipmakers SK Hynix (+4.5%) and Samsung (+2.8%)
- Japan’s Nikkei 225 advanced 1.3%, driven by AI chipmaker Tokyo Electron (+4.3%)
- Hong Kong’s Hang Seng gained 1.6%
- Shanghai Composite added 0.5%
- Australia’s ASX 200 rose 0.8%
- Taiwan’s Taiex and India’s Sensex climbed 0.8% and 0.3%, respectively
The rally across Asia and Europe reflected broader investor relief that global tech and AI sectors continue to perform strongly despite macroeconomic headwinds.
Outlook
As the week progresses, Wall Street’s focus will remain on the status of the shutdown deal, potential developments in healthcare policy, and any signs from the Federal Reserve about future interest rate moves. Investors are also eyeing the final earnings reports of the season and watching for geopolitical risks that could reintroduce volatility.
For now, Big Tech has reclaimed its role as the market’s driving force — a trend that could continue if AI innovation and earnings momentum stay strong into the final weeks of the year.
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