Tech giants drive Wall Street rebound as investors buy the dip

NEW YORK: Wall Street indexes kicked off the week on a solid ground, powered by gains in mega-cap stocks, while investors braced for a wave of corporate earnings and a crucial inflation report that could steer the market’s next move.

Markets shook off last week’s turbulence, sparked by renewed concerns over systemic credit stress in the banking sector, as investors piled into tech heavyweights in a classic “buy the dip” move.

Apple shares rose 4.3 percent to a record high, while Meta and Netflix gained more than 2 percent each. Alphabet added more than 1 percent.

The CBOE Volatility Index, Wall Street’s fear gauge, slipped to its lowest in over a week, signaling a return of investor confidence.

“AI is the story and investors are excited about the tremendous productivity gains that will come from AI. You have massive spending that will be further validated by many of the ‘magnificent seven’,” said Eric Schiffer, CEO private equity firm, Patriarch Organization.

Investor attention this week will also be on earnings from Wall Street heavyweights, including Tesla, Ford, GM and Netflix, as they are expected to offer a fresh stress test for equities trading near lofty valuations.

Some US regional bank results, too, will be monitored for a pulse-check on the sector’s health.

S&P 500 companies are expected to post a 9.3 percent year-on-year jump in third-quarter profit, according to LSEG IBES data.

At 11:18 a.m., the Dow Jones Industrial Average rose 369.91 points, or 0.80 percent, to 46,560.52. The S&P 500 gained 66.01 points, or 0.99 percent, to 6,730.02, while the Nasdaq Composite advanced 310.03 points, or 1.37 percent, to 22,990.00.

The Philadelphia Semiconductor Index hit an all-time high, and was last up 2.2 percent.

Micron shares rose 3.6 percent and hit a record high after Barclays raised its price target on the stock. ON Semiconductor and KLA added 5.6 percent and 4.8 percent, respectively.

S&P Energy index gained 0.3 percent, while industrials added almost 1 percent.