Wall Street roared back on Monday 9 November as major US stock indexes posted their strongest day in months, with the Dow Jones Industrial Average jumping more than 1,100 points and the S&P 500 recording its best single-day gain since April.

The Dow closed 2.15% higher at 52,389.75, adding 1,104.02 points. The S&P 500 rose 2.35% to 7,549.94, its largest one-day percentage gain since 8 April, while the Nasdaq Composite climbed 2.74% to 25,253.14, its best performance since 30 July. Smaller companies did even better, with the Russell 2000 up 3.15% at 2,840.85.

Chip stocks lead the rebound

Semiconductor shares, which had led last week's heavy sell-off, powered the recovery. The PHLX Semiconductor Index jumped 6.9% after falling more than 12% the previous week. Advanced Micro Devices surged about 13%, Lam Research rose 10%, Broadcom and Marvell Technology each gained around 9%, and Intel and Micron added about 6%. The iShares Semiconductor ETF closed 7.5% higher.

The rally came after a bruising week in which the S&P 500 suffered its worst week since April 2025, dragged down by a sell-off in technology shares amid worries that the pace of artificial intelligence development could slow after the Democrats' strong showing in the midterm elections. On Monday, every S&P 500 sector finished in positive territory, something that had not happened for more than six months.

Nvidia bucks the trend as board opens probe

The one big exception was Nvidia, the company at the centre of the AI boom. Its shares fell about 5% after reports over the weekend that chief executive Jensen Huang had a relationship with a woman alleged to be a spy for China. Nvidia said its board had begun an investigation, and Huang acknowledged an extramarital affair in a message to staff, saying he would cooperate with the inquiry.

Nvidia was the only member of the Magnificent Seven group of major technology stocks to lose ground. Meta Platforms and Tesla each jumped more than 5%, while Amazon, Apple and Microsoft all rose more than 2% and Alphabet edged higher. Caterpillar led the Dow with a gain of more than 7%, and Goldman Sachs and Cisco rose about 5% each.

Oil falls, gold rises, CPI next

In other markets, West Texas Intermediate crude oil futures fell 4.3% to about $86.90 a barrel, near their lowest since late August, amid hopes that tensions in the Iran war could ease. Brent crude fell 5.5%. Gold futures rose 1.8% to $4,150 an ounce, while bitcoin traded near $74,700. The yield on the 10-year US Treasury was unchanged at 4.87%.

Attention now turns to Tuesday's October consumer price index, due at 8:30am Eastern time. Economists expect headline prices to have risen 0.3% on the month and core prices, which exclude food and energy, to have risen 0.2%. The report is the last inflation reading before the Federal Reserve's December meeting, and traders will watch it closely after Monday's sharp rebound.