Wall Street rebounds from sharp losses as tech stocks rally and oil prices drop

US stock markets bounced back on Monday to recover from their worst weekly slump in nearly two years. The Dow Jones Industrial Average rose 844 points, or 1.65 percent. The S&P 500 gained 2 percent, and the Nasdaq Composite climbed 3.4 percent at their intraday highs. Lower crude oil prices and bargain-hunting investors helped lift market mood after a heavy sell-off last week.

Market Shifts

Last week saw massive losses, with the S&P 500 posting its biggest weekly drop since April 2025. Markets in Japan and Taiwan slipped into bear markets, while South Korean chipmakers Samsung Electronics and SK Hynix fell more than 16 percent. Brent crude dropped 4 percent toward 94 dollars a barrel following a 16 percent fall last week. This came after an unconfirmed report that Iran made concessions over the Strait of Hormuz. US President Donald Trump stated on Sunday that further strikes against Tehran were unlikely if talks progress, though Secretary of State Marco Rubio expressed caution.

Chip Stocks

Nvidia shares fell 9 percent to a seven-month low of 170 dollars apiece. This drop followed reports that CEO Jensen Huang admitted to a relationship with a woman linked to foreign intelligence efforts, prompting Nvidia to launch an internal security investigation. Despite this, other chip makers and major tech firms gained. Broadcom and AMD jumped 5 percent each, while Amazon, Tesla, Alphabet, and Microsoft also traded higher.

Context

Global stock markets often react sharply to sudden geopolitical news and changes in commodity prices like crude oil. Big shifts in the technology sector can quickly sway major stock indexes due to the heavy weight of large tech companies.