Wall Street Rebounds as AI Stocks Recover, With the Nasdaq Up 1.1% and the 10-Year Yield Above 5.15%
Chip and AI shares clawed back part of last week's rout on Monday while most other stocks slipped, and Europe fell after the weekend's unrest in France.
Tuesday, October 20, 2026/2 min read
Wall Street opened the week with a bounce in the stocks that had hurt it most. AI and chip shares recovered part of last week's steep losses on Monday, 19 October, lifting the S&P 500 and the Nasdaq, while the Dow Jones Industrial Average slipped slightly, as the Associated Press reported.
The S&P 500 rose 0.4 percent to 7,690.73. The Nasdaq Composite gained 1.1 percent to 26,430.89, and the Russell 2000 added 0.3 percent to 2,728.30. The Dow fell 0.1 percent to 51,966.03.
Why did tech stocks rebound on Monday?
Because they had fallen so far. The Nasdaq lost 4.5 percent last week and snapped a four-week winning streak, Yahoo Finance noted, the slide we reported in our look at the Nasdaq's worst week since June. The S&P 500 dropped 2 percent that week, Yahoo said, while the Dow posted its second straight weekly gain.
Monday's recovery was led by the same names. The iShares Semiconductor ETF rose almost 2 percent, Nvidia gained about 1.5 percent, and Intel rose 2.5 percent after a JPMorgan upgrade. Amazon jumped 5 percent after Morgan Stanley named it a top pick and raised its price target. Tesla climbed nearly 4 percent ahead of its earnings report on Wednesday.
CoreWeave, whose bonds and shares were at the centre of last week's debt worries (see our earlier report), rose as much as 7 percent in the morning and closed 0.4 percent lower.
What happened to bond yields, oil and the dollar?
The 10-year Treasury yield climbed to above 5.15 percent in late trading, about seven basis points higher than Friday, Yahoo Finance said. It had touched 5.33 percent the previous Wednesday after hotter-than-expected inflation data.
West Texas Intermediate rose 2.3 percent to $103.75 a barrel, while Brent fell 0.5 percent to $109.35 as traders weighed Middle East fighting against expected increases in Russian supply. The US dollar index rose 0.2 percent to 102.00 as the euro slid amid protests in France over living costs. The AP said European indexes fell more than 1 percent. Bitcoin rose to about $82,000 and gold fell 0.5 percent to $4,160 an ounce, which fits a day when investors leaned back toward risk.
What is next for markets this week?
Most US stocks outside AI and tech declined on Monday, the AP said, so the rally was narrow. Yahoo Finance noted SpaceX shares rose more than 1 percent after Elon Musk posted that he would give one of his SpaceX shares to every American child, and that the company reports results on Tuesday.
Tesla reports on Wednesday. With the 10-year yield above 5 percent, the question is whether one good day for the stocks hit hardest is a bottom or just a pause.
Published in The Outspoken Digest
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Outspoken Digest Markets DeskReports for The Outspoken Digest across Business, Crypto.
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