Wall Street climbed sharply on Monday, with Nvidia up 5.8% and Palantir 8.8%, as artificial intelligence (AI) stocks rebound and progress in Congress raises hopes of ending the U.S. government shutdown.
The Senate cleared an initial hurdle late Sunday on a compromise to restore federal funding, though final approval from Congress remains uncertain.
“The government shutdown lasted longer than expected. There were concerns about the economy, potential flight disruptions, and broader impacts,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management. Tech Stocks Lead the Rebound
Heavyweight tech companies recovered from recent losses. The S&P 500 technology sector index had fallen 4.2% last week. Nvidia, the world’s most valuable company, rose 5.8%, while AI analytics firm Palantir jumped 8.8%. Tesla added 3.7%.
Ross Mayfield, investment strategy analyst at Baird, said, “This is a rebound after being slightly oversold last week. The 'buy the dip' approach is acting quickly in the tech and AI space. Earnings in this sector have been strong.”
Overall, the S&P 500 climbed 1.54% to 6,832.43 points, the Nasdaq gained 2.27% to 23,527.17 points — its largest one-day percentage gain since May 27 — and the Dow Jones Industrial Average rose 0.81% to 47,368.63 points.
The small-cap Russell 2000 added 0.9%, while the PHLX semiconductor index jumped 3%. Trading volume was relatively light at 17.9 billion shares, compared with a 20-session average of 20.8 billion. Airlines Face Pressure
Airlines were under pressure as flight cuts and air traffic controller shortages continued to disrupt travel. United Airlines fell 1.3%, and American Airlines declined 2.5%. Betting website Polymarket indicated an 88% probability that the shutdown would end this week.
The historic shutdown has left gaps in federal economic data, forcing markets and the Federal Reserve to rely on private indicators, providing a mixed picture. Some Fed officials reiterated caution ahead of upcoming monetary policy decisions, while Fed Governor Stephen Miran called for a significant rate cut. AI Optimism and Earnings Season
The AI sector has fuelled a broader bull run in U.S. stocks this year, though monetisation concerns and internal spending previously triggered a market sell-off. Last week, the Nasdaq recorded its worst performance in more than seven months.
Third-quarter earnings season is nearly complete, with 83% of the 446 S&P 500 companies reporting results exceeding expectations, according to LSEG data.
Health insurer stocks fell after the Senate’s shutdown deal excluded extensions for Affordable Care Act subsidies, pushing the issue to a December vote. Centene dropped 8.8%, Humana fell 5.4%, and Elevance Health declined 4.4%.
Metsera plunged 14.8% after Pfizer won a $10 billion bidding war to acquire the company, while Eli Lilly rose 4.6% to a record high following a Leerink Partners upgrade.
Advancing stocks outnumbered decliners in the S&P 500 by a 1.7-to-1 ratio. The S&P 500 recorded 32 new highs and 8 new lows, while the Nasdaq saw 106 new highs and 128 new lows.
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Russia launched a large-scale overnight attack on Ukraine’s energy system early on Saturday (7 January), hitting power generation and distribution facilities with more than 400 drones and around 40 missiles, Ukrainian officials have said.
Storm Leonardo hit Spain and Portugal on Tuesday, forcing more than 11,000 people from their homes, as a man in Portugal died after his car was swept away by floodwaters and a second body was found in Malaga.
Start your day informed with AnewZ Morning Brief: here are the top news stories for the 7th of February, covering the latest developments you need to know.
U.S. and Ukrainian negotiators have discussed an ambitious goal of reaching a peace agreement between Russia and Ukraine by March, though the timeline is widely viewed as unrealistic due to deep disagreements over territory, according to multiple sources familiar with the talks.
Winter weather has brought air travel in the German capital to a complete halt, stranding thousands of passengers as severe icing conditions make runways and aircraft unsafe for operation and force authorities to shut down one of Europe’s key transport hubs.
Storm Leonardo hit Spain and Portugal on Tuesday, forcing more than 11,000 people from their homes, as a man in Portugal died after his car was swept away by floodwaters and a second body was found in Malaga.
An attacker opened fire at the gates of a Shiite Muslim mosque in Islamabad on Friday before detonating a suicide bomb that killed at least 31 people in the deadliest assault of its kind in the capital in more than a decade.
Ukraine and Russia carried out a rare exchange of 314 prisoners on Thursday as U.S.-brokered talks in Abu Dhabi closed with a pledge to resume negotiations soon, offering one of the clearest signs of diplomatic movement in months.
The United States and Iran are set to hold nuclear talks in Oman on Friday after Tehran requested a change of venue and a strictly bilateral, nuclear-focused format, a move that is fuelling questions about Iran’s negotiating strategy.
Uzbekistan is preparing to introduce Islamic banking after the Senate approved legislation creating a legal framework for Sharia-compliant financial services, a move authorities say could broaden financial access and attract new investment into the country’s economy.
Wall Street ended sharply lower on Tuesday as investors worried about artificial intelligence (AI) creating more competition for software makers, keeping them on edge ahead of quarterly reports from Alphabet and Amazon later this week.
U.S. stock markets finished mixed on Wednesday (28 January) as investors reacted calmly after the Federal Reserve left interest rates unchanged, a decision that had been widely expected and largely priced in.
The S&P 500 edged to a record closing high on Tuesday, marking its fifth consecutive day of gains, as strong advances in technology stocks offset a sharp selloff in healthcare shares and a mixed batch of corporate earnings.
Chevron is in talks with Iraq’s oil ministry over potential changes to the commercial framework governing the West Qurna 2 oilfield, one of the world’s largest producing assets, after Baghdad nationalised the field earlier this month following U.S. sanctions imposed on Russia’s Lukoil.
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