Nasdaq 100 Climbs on AI Trade Revival After Rout: Markets Wrap
(Bloomberg) — A rebound in chipmakers buoyed the stock market as dip buyers emerged on bets the artificial-intelligence investment boom will continue to support solid earnings.
Following a rout in one of the most-crowded bets, a gauge of chip giants climbed 1.6%. The Nasdaq 100 added 1.2%. Nscale Ltd. was said to be in talks to sell computing power to Anthropic PBC in a deal that could be worth about $45 billion. This week’s earnings from Meta Platforms Inc. will provide a fresh test for confidence in the AI trade. Tesla Inc. is also due to report.
Oil prices remained at elevated levels, weighing on Treasuries. The market also came under pressure as French bonds got hit after a weekend of violent unrest.
The advance in tech stocks lost steam last week as investors questioned the sustainability of AI spending, given the outlook for higher rates. The industry is still set to account for nearly 70% of global earnings growth next year, according to Citigroup Inc.
“Results will show whether strong profit growth can restore confidence in the equity rally,” said Mark Haefele at UBS Chief Investment Office. “We continue to expect resilient growth and earnings to support equities, and see attractive opportunities in quality bonds.”
While the recent semiconductor selloff was jarring, Lisa Shalett at Morgan Stanley Wealth Management saw the market action as healthy. The reason is that it has recalibrated yields and awakened corners of the market from complacency.
“That said, growth and earnings remain strong, equity valuations have improved and the AI-capex cycle — dominated by rate-insensitive hyperscalers — is secure,” she added. “2027 should feature slowing capex growth, cooling inflation comparisons and further valuation reversion toward sustainable trend profit growth.”
The final three months of the year have historically been favorable for stocks. Although there is no guarantee these historical patterns will continue in 2026, strong corporate profit growth and resilient economic activity could support further gains through year-end, according to Brock Weimer at Edward Jones.
At Morgan Stanley, Michael Wilson says investors should prepare to add risk to their portfolios as a months-long pullback in parts of the equity market nears an end.
“We advise investors to be ready for either a very rapid reconciliation or a slower bleed into November because in our view, that will be the time to add risk rather than shun it,” he noted.
Corporate Highlights:
Elon Musk vowed to distribute a share of SpaceX to each child in the US, a multibillion-dollar pledge that adds to a string of sizable donations from the tech industry for the benefit of the American public. Apple Inc. confirmed that it’s holding a product launch event on Oct. 28, where the company is planning to debut its first touch-screen MacBook. Intel Corp. was upgraded to neutral at JPMorgan Chase & Co., which said the chipmaker’s turnaround might take years, but the management’s execution has been solid. Walmart Inc. is poised to raise about $6.5 billion from the sale of US and Canadian dollar bonds as the world’s largest retailer seeks to diversify its funding sources amid a spending spree. Kimberly-Clark Corp. raised $4.9 billion from an investment-grade bond sale to help fund its pending acquisition of Tylenol maker Kenvue Inc. What Bloomberg strategists say…
“Equity options are flashing renewed signs of stress, even as the broader stock market continues to demonstrate relative resilience.”
—Frank Monkam, Macro Strategist, Markets Live. For the full analysis, click here.
Some of the main moves in markets:
Stocks
The S&P 500 rose 0.4% as of 4 p.m. New York time The Nasdaq 100 rose 1.2% The Dow Jones Industrial Average was little changed The MSCI World Index was little changed Currencies
The Bloomberg Dollar Spot Index was little changed The euro fell 0.2% to $1.1211 The British pound fell 0.2% to $1.3303 The Japanese yen fell 0.3% to 158.55 per dollar Cryptocurrencies
Bitcoin rose 1.2% to $81,826.32 Ether rose 2% to $2,396.34 Bonds
The yield on 10-year Treasuries advanced seven basis points to 5.14% Germany’s 10-year yield advanced three basis points to 3.46% Britain’s 10-year yield advanced six basis points to 5.43% Commodities
West Texas Intermediate crude rose 2.3% to $103.78 a barrel Spot gold fell 0.6% to $4,140 an ounce ©2026 Bloomberg L.P.
