Dow climbs 230 points as tech giants rally from last week’s slump

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  • US stocks climbed on Monday as new deals and shifting investor sentiments boosted tech giants.
  • Oracle leaped following reports that the company won its bid to partner with TikTok’s US operations.
  • Nvidia said it would purchase Arm Holdings from Softbank in a $40 billion deal. The announcement boosted semiconductor stocks including Micron and Qualcomm.
  • Oil fell after OPEC lowered its forecast for the commodity market’s demand recovery. West Texas Intermediate crude fell as much as 1.3%, to $36.83 per barrel.
  • Watch major indexes update live here.

US equities gained on Monday as a spate of new deals fueled tech stocks’ rally from recent lows. Apple, Facebook, and Tesla all climbed as investors turned back to slammed mega-cap companies that have been slammed in recent weeks.

Oracle surged on reports that the company won its partnership bid for TikTok’s US operations. The firm is expected to take a sizeable stake in the ByteDance-owned platform. News of the partnership comes just days before the White House’s deadline for a deal to be met.

Microsoft underperformed the tech sector after announcing on Sunday that ByteDance declined its offer.

Here’s where US indexes sat shortly after the 9:30 a.m. ET market open on Monday:

  • S&P 500: 3,381.11, up 1.2%
  • Dow Jones industrial average: 27,894.19, up 0.8% (229 points)
  • Nasdaq composite: 11,032.21, up 1.7%

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Semiconductor stocks gained after Nvidia said it would buy Arm Holdings from Softbank in a $40 billion deal. The acquisition gives Nvidia a stronger foothold in the mobile computing industry, as Arm designs the architecture for chips used in nearly all mobile devices. Qualcomm, Micron, and TSMC gained on the news.

In the health care sector, AstraZeneca resumed a phase 3 trial in the UK after pausing the study last week for safety concerns.

Gilead announced it would buy biopharmaceutical firm Immunomedics for $21 billion. Shares of the latter firm spiked higher on news of the deal.

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The Monday gains come after the S&P 500’s first back-to-back weekly losses since March. The benchmark sank through last week as investors continued to dump highly valued tech stocks in choppy sessions. The Cboe Volatility Index (VIX) – Wall Street’s preferred gauge of expected market volatility – closed in on 30 in Friday trading, signaling frothy price action would persist through the fall.

Still, the index’s steady decline through September should soothe traders fearing another downturn, Chris Larkin, managing director of trading and investment product at E-Trade, said.

“While price swings may be par for the course, traders keeping an eye on the VIX could have noticed that last week’s sell-off may have been overdone-the market’s fear gauge made a lower high suggesting there was less fear in the market despite the further decline in stock prices,” he said.

Read more: Buy these 30 stocks that offer the best bargains for strong sales and earnings growth in a pricey market, Credit Suisse says

Spot gold gained as much as 0.9% to $1,958.17 per ounce. The US dollar weakened and Treasury yields climbed slightly.

Oil prices sank after OPEC downgraded its demand outlook for the commodity market. West Texas Intermediate crude fell as much as 1.3%, to $36.83 per barrel. Brent crude, oil’s international benchmark, dropped 1.1%, to $39.39 per barrel, at intraday lows.

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