US equities opened sharply higher on Monday as technology and artificial intelligence shares recovered from October's heavy sell-off and falling crude prices buoyed investor sentiment ahead of the midterm elections and key jobs data. The Dow Jones Industrial Average climbed 407 points, while the S&P 500 added 0.48% and the Nasdaq Composite rose 0.69%.
Exchange-traded funds tied to the major indices, including QQQ, DIA and VOO, have pulled back in recent weeks but face key catalysts from the elections, Apple and AMD earnings, and employment data.
The rebound followed a bruising period for megacap technology names, with the Nasdaq-100 shedding more than $2.5 trillion in market value in October and nearing correction territory. On Monday, SpaceX and Alphabet gained over 1%, Nvidia added 1.6%, while Intel fell another 2.78% after its weak fourth-quarter revenue outlook and warning that it does not expect positive cash flow this year. Apple edged 0.47% lower ahead of its quarterly report.
Investor concerns over AI spending remain in focus. OpenAI reportedly lowered its latest funding-round target by $10 billion, while Blackstone indicated that Anthropic may not receive an investment-grade credit rating after its planned IPO. Additional pressure came from Kioxia's weak operating profit guidance, which weighed on AI-related sentiment in Asia.
Oil prices tumbled, with Brent crude down around 5% to $106.63 a barrel and West Texas Intermediate off more than 6.4% to $97.44, after reports of talks between Iranian and Qatari officials raised hopes for an end to the US-Israeli war on Iran. The pullback in energy prices supported risk appetite ahead of the US midterm elections, hundreds of corporate earnings reports, and Friday's nonfarm payrolls data. The Federal Reserve, which kept rates between 3.75% and 4% last week, remains in focus as investors assess whether strong jobs numbers could trigger another hike.
