Rallies for Nvidia and Big Tech help Wall Street nearly erase last week's loss

NEW YORK (AP) — Big Tech and other superstars of the U.S. stock market got back to rallying on Monday, and Wall Street recovered most of its loss from last week.

The S&P 500 climbed 1.5% and clawed back nearly all its drop from last week, which was its first weekly loss in four. The Dow Jones Industrial Average rose 381 points, or 0.8%, and the Nasdaq composite jumped 2.3% for its best day since May.

Nvidia was by far the strongest force lifting the market and leaped 5.8%. It was a powerful rebound after Nvidia and other winners of the frenzy around artificial-intelligence technology led last week’s drop. Critics say their stock prices shot too high and too fast in the AI mania, drawing comparisons to the 2000 dot-com bubble that ultimately burst.

Taiwan Semiconductor Manufacturing Co., which makes chips for Nvidia and other companies, saw its stock that trades in United States rise 3.1% after reporting that its revenue climbed nearly 17% in October from a year earlier. While such growth is strong compared with other companies, it’s a slowdown from TSMC’s earlier performance.

Another AI darling, Palantir Technologies, jumped 8.8% for the biggest gain in the S&P 500. That helped it recover some of its loss since it delivered a profit report last week that topped analysts’ expectations.

Drops for several health insurers helped keep the market’s gains in check. They fell as uncertainty remains about whether Washington will extend expiring health care tax credits, a sticking point on Capitol Hill that’s created the longest-ever shutdown for the U.S. government.

That’s even as the Senate took the first steps on Sunday to end the shutdown.

President Donald Trump suggested in a social media post over the weekend that cash being sent to “money sucking” insurance companies should instead go directly to people so they can buy their own health insurance.

Humana fell 5.4%, Elevance Health sank 4.4% and Centene dropped 8.8%.

Elsewhere on Wall Street, Berkshire Hathaway slipped 0.4% as its CEO, famed investor Warren Buffett, warned shareholders that many other companies will fare better in the decades ahead because of Berkshire Hathaway’s massive size. Buffett, 95, is set to step down in January.

Tyson Foods climbed 2.3% after the seller of chicken, beef and pork reported a stronger profit for the latest quarter than analysts expected.

Roughly four out of every five companies in the S&P 500 that have so far reported their results for the summer have also topped analysts’ profit expectations, according to FactSet. Companies usually beat analysts’ estimates each quarter, but the pressure was high this time around because they needed to justify the big moves upward for their stock prices since April.

Delivering bigger profits is one of the easier ways companies can quiet criticism that their stock prices have become too expensive.

Companies have also generally been giving strong forecasts for upcoming results, according to Bank of America strategist Savita Subramanian. That has analysts’ expectations for earnings in 2026 nearly all the way back to where they were before Trump shocked financial markets in April with his “Liberation Day” announcement of worldwide tariffs.

All told, the S&P 500 rose 103.63 points to 6,832.43. The Dow Jones Industrial Average climbed 381.53 to 47,368.63, and the Nasdaq composite rallied 522.64 to 23,527.17.

In stock markets abroad, indexes rallied across much of Europe and Asia.

South Korea’s Kospi jumped 3% for one of the bigger gains. Chip company SK Hynix, which is cooperating with Nvidia on artificial intelligence, leaped 4.5%. Its bigger rival, Samsung Electronics, climbed 2.8%.

In the bond market, the yield on the 10-year Treasury held at 4.11%, where it was late Friday.

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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.