Nasdaq Soars 1.18%: Chip & AI Stocks Lead Robust Recovery
On Monday, October 19, 2026, Wall Street witnessed a significant rebound. The tech-centric Nasdaq Composite ascended by 1.18%, adding 307.83 points to close at 26,447.86. This surge was primarily driven by a comprehensive recovery in the semiconductor and artificial intelligence stocks, following the previous week’s severe selloff.
The Philadelphia Semiconductor Index experienced a surge of approximately 2%, breaking an eight-session losing streak. During this period, it had plummeted by 15.7%, marking its longest consecutive decline since October 2008. The S&P 500 gained 40.86 points to reach 7,700.54, while the Dow Jones Industrial Average inched up by 13.01 points to 52,015.42.
The selloff in the preceding week was triggered by concerns that escalating interest rates could stifle investment in expensive AI infrastructure. This would severely impact data center operators and chip companies. However, Monday’s reversal was propelled by investors anticipating that the forthcoming earnings reports would validate the ongoing AI boom. Amazon shares leaped 4.8% after being named Morgan Stanley’s top pick. Meanwhile, Tesla and Intel saw gains of 3.7% and nearly 3% respectively, following a J.P. Morgan upgrade to “neutral”.
Despite this positive momentum, market observers remain wary. Key earnings reports from Meta and Tesla are expected on Wednesday, with SpaceX set to report its first quarterly results as a public company on Tuesday. One strategist cautioned that the market is still “far from out of the woods.”
Source: Virginia Business / Reuters – Nasdaq climbs as chip and AI-linked stocks bounce back