Stock Market Today: Nasdaq Rebounds 1.1% as AI Stocks Bounce Back; Dow Slips on Sector Rotation

New York, Oct. 19, 2026 — U.S. stocks closed mostly higher on Monday, with the Nasdaq Composite snapping back from its worst weekly decline since June as bargain hunters piled into beaten-down AI and semiconductor shares ahead of a pivotal week of Big Tech earnings.

The Nasdaq Composite jumped 290.85 points, or 1.1%, to close at 26,430.89 . The S&P 500 gained 31.29 points, or 0.4%, to 7,690.73 . The Dow Jones Industrial Average bucked the trend, slipping 36.38 points, or 0.07%, to 51,966.03, as financial and industrial names weighed on the blue-chip index .

Why Did the Nasdaq Rebound Today?

The tech-heavy index recovered from last week’s rout, which saw the Nasdaq shed 4.5% — its steepest weekly drop since late June — amid fears that rising interest rates could cripple the debt-fueled AI infrastructure boom .

1. AI and semiconductor stocks staged a broad comeback. The Philadelphia Semiconductor Index (SOX) surged 2.6%, ending an eight-session losing streak that had wiped out roughly $2.3 trillion in market value — the longest slide since October 2008 . Micron Technology climbed 3.1%, Intel rose 3%, and Broadcom added 2.2% .

2. Upgrades fueled the rally. JPMorgan lifted Intel to “neutral” from “underweight,” while Goldman Sachs upgraded CoreWeave to “buy,” calling the recent selloff a buying opportunity . CoreWeave, which had plunged more than 25% last week on debt concerns, rebounded modestly .

3. Amazon surged 5% after Morgan Stanley named the e-commerce and cloud giant its “top pick,” boosting megacap tech sentiment .

Which Sectors and Stocks Moved?

Technology and consumer cyclical led the gains, while real estate and consumer defensive lagged . Cleveland-Cliffs soared as much as 20% — its biggest intraday jump since July — after the steel producer posted strong third-quarter results, helped by tariffs and elevated steel prices .

On the downside, bank stocks extended losses following last week’s earnings releases. Wells Fargo fell 2.5%, Bank of America lost 1.7%, and Morgan Stanley slipped 1% . Ameriprise Financial dropped nearly 4% after BofA downgraded the stock two notches to “underperform,” citing retention challenges .

What Are Treasury Yields and the VIX Saying?

The 10-year Treasury yield edged up about 3 basis points to 5.13%, though it remained well below the multi-decade highs reached earlier this month . The bond market’s relative calm provided a supportive backdrop for equities.

The CBOE Volatility Index (VIX) retreated after spiking above 22 last week — its highest level in four months — as the tech rebound eased investor anxiety .

What’s Next for Investors?

All eyes are on this week’s Big Tech earnings, which will serve as the first major test of whether massive AI capital expenditures are translating into profits. Netflix reports Tuesday, followed by Tesla, Meta Platforms, and IBM on Wednesday .

According to CME FedWatch, markets price less than 15% odds of a rate hike at the October 28 Fed meeting, though a December increase is nearly fully priced in . Fed Chair Kevin Warsh offered no policy hints at the IMF annual meeting, reiterating only the central bank’s commitment to price stability .

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Key Takeaways (Quick Summary)

• Nasdaq rebounded 1.1% to 26,430.89, snapping its worst weekly losing streak since June; S&P 500 gained 0.4%; Dow slipped 0.07%
• Semiconductor index surged 2.6%, ending an eight-day slide that erased $2.3 trillion in market value
• Intel rose 3% on JPMorgan upgrade; CoreWeave rebounded on Goldman Sachs upgrade; Amazon jumped 5% on Morgan Stanley “top pick” call
• Cleveland-Cliffs soared up to 20% on strong Q3 results
• 10-year Treasury yield held at 5.13%, providing a calmer backdrop for equities
• Big Tech earnings loom: Netflix Tuesday; Tesla, Meta, IBM Wednesday
• Fed rate hike odds: under 15% for October, but December hike nearly fully priced