U.S. stocks diverged Monday as a rebound in chip and artificial intelligence shares lifted the Nasdaq Composite, while the Dow slipped ahead of several closely watched earnings reports.
The Nasdaq Composite closed Oct. 19 at 26,430.89, up 1.11%. The S&P 500 gained about 0.4%, while the Dow Jones Industrial Average lost about 0.1%.
The advance reached relatively few parts of the market. The Associated Press said most shares beyond AI and technology fell.
Chip shares rose after a prolonged slide. Reuters said the Philadelphia Semiconductor Index had lost about 15.7% across eight sessions before its losing streak ended Monday. The index had not recorded a longer run of daily declines since October 2008, the outlet reported.
The Associated Press reported that the Nasdaq and S&P 500 had each posted their weakest week since June.
Reuters reported that concerns about financing AI development and the prospect of higher interest rates had weighed on technology shares. It described the coming earnings reports as a test of whether profit growth would ease worries about valuations, debt and rates.
Rosenblatt Securities managing director and equity sales trader Michael James told Reuters the market was “far from out of the woods.”
Several company earnings events are scheduled for Oct. 21. Meta has set a third-quarter call, while Tesla plans to release its quarterly results after the market closes. Lam Research and Texas Instruments also have earnings calls scheduled that day.
