(Nov 10) : A renewed wave of dip buying drove stocks to their best day since April in the wake of a technology selloff that had roiled Wall Street, with the market also gaining as oil prices sank.

Following a drawdown in one of the world’s most-crowded trades, a gauge of chipmakers jumped almost 7%. The S&P 500 rose 2.35%. The Nasdaq 100 added 3.4%. That’s despite a 4.3% slump in Nvidia Corp. amid an investigation into Chief Executive Officer Jensen Huang after his admission of an affair with a woman identified in a series of reports as a suspected Chinese spy.

“For now, the market is showing the resilience needed to turn last week’s weakness into another buying opportunity,” said Mark Hackett at Nationwide. “That’s an encouraging sign.”

Also helping sentiment was a drop in energy costs on optimism around efforts to end the Iran war. President Donald Trump struck a more conciliatory tone, saying it’s “highly unlikely” he will order extensive strikes on the Islamic Republic.

That helped reduce anxiety about inflation ahead of a report on consumer prices — the last before the Federal Reserve meeting in December. Still, 10-year Treasuries fell amid gains in riskier assets.

“We continue to see economic conditions as supportive of corporate fundamentals,” said Brock Weimer at Edward Jones. “Thus, we recommend that investors maintain an overweight allocation to equities relative to fixed income.”

The sharp deterioration in momentum that played out in equities last week may have pushed investor pessimism close to peak levels, according to JPMorgan Chase & Co. strategists led by Dubravko Lakos-Bujas.

The recent tech selloff represented a reset rather than the start of a structural downturn in the AI investment cycle. But the rebound does not remove the risks created by concentrated positioning and elevated expectations, said Ulrike Hoffmann-Burchardi at UBS Chief Investment Office.

While it’s unlikely last week shut the door on volatility, what unfolded may have been more about investors repositioning within the AI trade rather than abandoning it altogether, noted Chris Larkin at E*Trade from Morgan Stanley.

“There’s good reason to believe the stock market’s long-term rally is intact, especially given that the selloff overshadowed another week of strong economic data,” he added.

uploaded by Isabelle Francis