US stocks had their biggest rally in over seven months as investors stepped in after a sharp tech-led selloff last week, while a drop in oil prices provided another boost Monday.
The S&P 500 gained 2.3% by the end of the trading day in New York. More than five stocks gained for every one that fell as all 11 market sectors climbed. It was the broadest rally in nearly a year.
Nvidia Corp. shares closed at their lowest price in over seven months after Chief Executive Officer Jensen Huang admitted to an extramarital affair with Alice Huang, a woman identified as a suspected Chinese spy. US-listed China stocks closed lower amid concerns of souring relations and potential restrictions between the two countries.
The tech-heavy Nasdaq 100 closed up3.4% while the Dow Jones Industrial Average rose 2.2%. Both indexes are continuing their rebound from late last week after Thursday’s sharp drop, even as the market’s largest stock remained under pressure. Cyclical corners of the market including consumer discretionary and industrials led the advance.
“The AI trade had started to move from the ‘believe me’ to the ‘show me’ space,” said Luke Rahbari, chief executive officer of Equity Armor Investments. While a broader market recovery is possible, Rahbari noted that “it’s not going to be a straight line up.”