S&P 500 rebounds 1.9% as oil falls and Nvidia faces internal probe

The S&P 500 climbed 1.9 percent on Monday, recovering a large portion of its previous week’s decline as crude oil prices dropped. The broad index is now sitting just 3.8 percent below the all-time high recorded last month. Investors had grown anxious after Democratic wins in the U.S. midterm elections raised concerns about potential regulatory slowdowns for artificial intelligence infrastructure.

The Dow Jones Industrial Average gained 805 points, or 1.6 percent, by 10:30 a.m. Eastern time. The Nasdaq composite rose 2.5 percent. This rebound came even as Nvidia, a major driver of the tech sector, saw its shares fall. The market’s strength was bolstered by a 4.1 percent drop in Brent crude oil, which settled at $94.27 per barrel.

Oil prices have fallen from above $112 at the start of the month due to uncertainty regarding the conflict with Iran. President Donald Trump told CNN over the weekend that resuming strikes was highly unlikely if the United States saw progress in negotiations. Secretary of State Marco Rubio countered on Sunday, describing some of Iran’s demands for ending the war as outrageous and ridiculous.

Strong earnings reports from major corporations also supported the market. Constellation Energy shares jumped 6.3 percent after the power company reported summer profit and revenue that exceeded analyst expectations. The firm has recently secured deals to power data centers for major technology companies. These data centers have faced increased scrutiny following the midterm results, with voters citing rising power bills as a concern.

Investors worried that new government restrictions could reduce purchases of AI chips and electricity. Despite this, stocks tied to the AI buildout held steady on Monday. Advanced Micro Devices rose 9.5 percent, recovering part of its 11 percent loss from the prior week. CoreWeave climbed 6.4 percent after dropping 15.4 percent the previous week.

Nvidia, which became a symbol of the AI boom, fell 3.8 percent. The company announced it is investigating CEO Jensen Huang after he acknowledged an intimate relationship with a business executive. According to The New York Times, U.S. intelligence determined that this individual was gathering information for China. Nvidia’s board stated it has no reason to believe national security or company secrets were compromised, but the inquiry will examine all available information.

Guo Jiakun, a spokesperson for China’s Ministry of Foreign Affairs, called the allegations nothing but smears against China. In international markets, indexes in China showed mixed results with modest moves. The Shanghai index rose 0.3 percent while the Hong Kong index dipped 0.1 percent. Japan’s Nikkei 225 jumped 2.3 percent and France’s CAC 40 rose 1.2 percent.

U.S. Treasury yields remained relatively steady following significant volatility last week. The yield on the 10-year Treasury held at 4.86 percent, matching its late Friday level. It had previously topped 5.30 percent last month, reaching its highest level in two decades amid fears of high inflation and national debt. A pullback in these yields typically helps lower mortgage rates and supports stock prices.