US Stocks Rally Led by S&P 500 and Nasdaq Despite Nvidia Drop

United States stock markets surged on Monday, led by a strong recovery across major indexes as investors shrugged off an earlier tech sell-off and reacted to positive geopolitical developments. The Dow Jones Industrial Average rose approximately 2.2%, while the S&P 500 gained between 2.3% and 2.68% to reach session highs. The tech-heavy Nasdaq Composite climbed about 2.7% following a volatile post-election week that had previously driven indexes into correction territory.

The broad market rebound was supported by a combination of short-covering after panic selling and falling energy prices. Brent Crude Futures dropped below $94 per barrel, helping alleviate some economic pressures ahead of upcoming inflation data. Economists surveyed by Bloomberg expect the October Consumer Price Index to show moderating monthly inflation compared to September's figures, though annual figures remain anticipated by the market.

The rally occurred despite considerable scrutiny surrounding artificial intelligence giant Nvidia. The company's stock fell roughly 4% to 5% following the announcement that its board of directors has opened an independent investigation into CEO Jensen Huang. The inquiry follows revelations regarding an extramarital affair with an individual whom US intelligence officials reportedly suspect of having ties to Chinese intelligence agencies.

In a memo to employees, Huang addressed the situation directly, stating, "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry." Analysts noted that the situation introduces notable key-person risk for Nvidia, a company that commands a massive valuation and makes up a significant portion of the S&P 500 index.

While Nvidia faced downward pressure, the broader semiconductor and technology sector rallied significantly. Competitor Advanced Micro Devices saw its shares jump 12% following an analyst upgrade from Oppenheimer. Additionally, Alphabet announced two new artificial intelligence chips aimed at challenging market dominance, pushing its premarket stock up nearly 3%.

Markets also found support in international headlines, including reports of potential progress regarding a diplomatic framework involving Washington and Tehran over regional nuclear discussions and oil transit routes. The positive developments contributed to downward pressure on crude oil and bolstered investor confidence across cyclical and industrial equities.

As Wall Street looks ahead to upcoming economic reports and earnings announcements from various companies, market participants continue to balance enthusiasm for artificial intelligence infrastructure with emerging corporate governance challenges. Analysts emphasize that underlying fundamental metrics, including moderate earnings per share growth, continue to provide a foundation for the broader market.