Tech stocks showed signs of recovery on Monday, with Palantir (PLTR) and Datadog (DDOG) each rising over 4%. Snowflake (SNOW) and semiconductor stocks also experienced broad gains following last week’s declines. Western Digital (WDC) and Sandisk (SNDK) were at the forefront of the storage sector's rally, while Micron (MU), Intel (INTC), and Nvidia (NVDA) contributed to the overall rise. According to Yahoo Finance, over 90% of semiconductor names and approximately 80% of software stocks advanced on their watchlists.
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The rebound was partly fueled by Bernstein's upgrade of Datadog, highlighting an increase in demand related to AI. Palantir announced a government-cloud partnership; however, its stock faced potential selling pressure in the $195–$200 range. Surpassing this price point could reignite its recent record high and bolster the overall market recovery after previous unsuccessful breakouts.
Amazon (AMZN) played a significant role in the market's uplift by climbing 5%, recovering from last week’s losses after being named a top pick by Morgan Stanley. Tesla (TSLA) also saw an increase. Together, these movements resulted in the Nasdaq Composite (^IXIC) gaining 1.1% and the S&P 500 (^GSPC) rising 0.4%.
However, not all stocks shared in the gains. Mark Malek, chief investment officer at Siebert Financial, cautioned against indiscriminately purchasing AI stocks that had merely dipped. CoreWeave (CRWV) exemplified this, as its stock fell to $61.12 after initially rallying following a Goldman Sachs upgrade. This price is just above July's closing low of $60.82. Additionally, nearly two-thirds of S&P 500 stocks declined, and the Invesco S&P 500 Equal Weight ETF (RSP) lost value. Despite the overall index’s increase, a majority of its constituents fell.
The upcoming trading session will test whether more stocks can align with the rebound and if CoreWeave can distance itself from its July lows.