US stocks open up, shrugging off Nvidia woes
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Options traders work on the floor of the New York Stock Exchange, Friday, in New York. AP-Yonhap
NEW YORK — Wall Street stocks advanced early Monday, shrugging off a big drop in Nvidia shares as oil prices retreated and other artificial intelligence stocks rose.
Crude prices fell more than four percent on diplomatic hopes concerning the US-Iran war, while many tech giants like Google parent Alphabet and leading AI companies such as Micron were higher after the group badly sold off on Thursday.
The “market implicitly decided that whatever happened last week was a one-day event,” said Steve Sosnick of Interactive Brokers.
About 25 minutes into trading, the Dow Jones Industrial Average was up 1.4 percent at 52,009.10.
The broad-based S&P 500 rose 1.7 percent to 7,499.41, while the tech-rich Nasdaq Composite Index jumped 2.1 percent to 25,087.25.
Shares of AI leader Nvidia sank about five percent after the chip company said it launched an investigation on CEO Jensen Huang following reports he was targeted by Chinese intelligence.
“Nvidia for now, is being treated as a one-off story,” said Briefing.com analyst Patrick O’Hare, adding that investors are being driven more by “an inclination to buy into last week’s weakness.”
“The market isn’t caught up in the notion that this situation is going to have a systemic domino effect,” O’Hare said of Nvidia.
This week’s calendar includes October reports on consumer and wholesale inflation.
