Dow Jones Industrial Average futures rose 619 points, or 1.2 percent, on Monday as a decline in oil prices helped investors move past last week’s broad sell-off.
The S&P 500 rose 0.9 percent, while the Nasdaq Composite gained 0.8 percent.
The Dow Jones Industrial Average led early gains on Monday, fueled by a decline in energy costs. U.S. The downward pressure on oil followed signals from President Donald Trump that further U.S. strikes on Iran were unlikely, citing progress in diplomatic talks.
This relief in the energy sector provided a backdrop for a partial recovery following Thursday’s sharp AI-driven sell-off, which had pushed the Nasdaq into correction territory, down nearly 12 percent from its early-October record.
Nvidia shares fell 7 percent as the board of directors opened an independent investigation into co-founder and CEO Jensen Huang. The probe centers on reports of an affair with a businesswoman whom U.S. intelligence agencies identify as a Chinese spy. While Beijing has dismissed the espionage allegations as groundless speculation,
the governance crisis has drawn the attention of Congress.
Three Republican committee chairmen—Brian Mast of Foreign Affairs, John Moolenaar of the Select Committee on China, and Rick Crawford of Intelligence—have requested that Huang appear at a joint closed-door briefing on November 18. The company has been asked to confirm this date or propose an alternative by November 11.
The scandal has created a key-person discount
for the chipmaker, which had already closed Friday about 22 percent below its October records. Susannah Streeter, chief investment strategist at the Wealth Club, noted that while repercussions across the wider chip industry currently appear limited, the scandal could disrupt the tech rebound. Nvidia has insisted there is no reason to believe any secrets were leaked during the alleged intelligence effort.
Market participants are closely watching whether the AI infrastructure boom will sustain its momentum. Concerns persist regarding potential Democratic regulatory tightening on data center construction, energy use, and development costs. Corporate results this week serve as a critical test, with cloud provider CoreWeave scheduled to report on Tuesday. Analysts are also monitoring debt issuance, which, as of November 4, has already surpassed the previous record of $1.86 trillion set in 2020.
Retail sentiment remains a point of contention. Meanwhile, investors are bracing for key inflation data, with the consumer price index due Tuesday and the producer price index on Friday. These reports are expected to provide clues on the Federal Reserve’s next move, especially as money markets price in a roughly 80 percent chance of a quarter-point rate hike in December following a blowout jobs report that added 165,000 positions.
While Nvidia shares struggled, other semiconductor stocks saw divergent performance. Broadcom and Advanced Micro Devices both advanced 5 percent, and On Semiconductor rose 3 percent. Other Magnificent Seven
names also traded higher, with Amazon gaining 5 percent and Tesla and Alphabet climbing more than 3 percent. In Asia, Taiwan’s benchmark TAIEX closed up 4.94 percent at 41,661.70, reclaiming the 40,000 level lost in Friday’s slide, while Taiwan Semiconductor Manufacturing Co. (TSMC) rose NT$100 to NT$2,235.
As trading continues, market attention remains divided between the tech-heavy Nasdaq and the traditional economy. Investors are balancing the potential for further tightening—firmly signaled in the Federal Reserve’s own projections according to analysts at Commerzbank Research—against the possibility that the worst of the AI correction may still be ahead.
Thomas Mathews, head of markets for Asia Pacific at Capital Economics, warned that a further risk to the sector would be any concrete sign that hyperscalers are paring back capital expenditures.
Earlier coverage: US Stock Futures Rise as Tech and AI Shares Recover From October Selloff