US Stocks Rally as Chip Shares Rebound and Oil Slides Ahead of CPI Report
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US stocks rose sharply on Monday, November 9, 2026, as investors bought back technology and chip shares after last week’s heavy sell-off. The Nasdaq led the gains, oil prices fell after President Donald Trump played down the chance of fresh strikes on Iran, and the next big test is Tuesday’s October inflation report.
What happened
The rally built through the morning. At 09:46 a.m. ET, the Dow Jones Industrial Average was up 652.49 points, or 1.27%, to 51,938.22, the S&P 500 was up 108.81 points, or 1.48%, to 7,485.67, and the Nasdaq Composite was up 458.92 points, or 1.87%, to 25,038.34, according to Reuters. By late morning the gains had grown, with the Nasdaq up about 2.5% and the S&P 500 up about 2.1%, according to dpa-AFX market coverage.
Chip stocks led the recovery. Marvell Technology rose 5% and Broadcom rose 6.5%, while Intel and Qualcomm each rose nearly 2%. The broader Philadelphia Semiconductor Index was up 3.3%, after suffering its worst week since March 2025. Among the big technology companies, Microsoft, Alphabet, Meta and Amazon were up between 2.5% and 5%, and Tesla rose 4.5%. Nine of the 11 major S&P 500 sectors were in positive territory, with consumer discretionary and communication services leading the gains.
The one big exception was Nvidia. Its shares fell 5.6% after the board opened an independent investigation into whether chief executive Jensen Huang was targeted by a foreign intelligence effort. We covered that story in our post on the Nvidia board opening a probe into CEO Jensen Huang. The fall came even as the rest of the chip sector rose, which shows how a company specific problem can move one stock while the wider market goes the other way.
Wall Street brokerages including Morgan Stanley and UBS called last week’s rout in AI shares overdone, arguing that the risks of extreme regulation of data center building under a Democrat-controlled Congress are unlikely to play out. That view helped buyers step back in after Thursday’s sell-off, when the S&P 500 fell 4.36% in its worst day since April 2025 and the Nasdaq entered correction territory. We covered that sell-off in our post on the S&P 500 plunging 4.3% in its worst day since April 2025 as the Nasdaq entered correction, and the partial recovery in our post on US stocks rebounding on Friday as the Nasdaq climbed.
Earnings also supported the mood. Of the 335 companies in the S&P 500 that had reported results as of Thursday, 82.4% beat estimates, according to LSEG Data and Analytics. Advancing issues outnumbered decliners by a 3.87 to 1 ratio on the New York Stock Exchange, and by a 2.32 to 1 ratio on the Nasdaq.
Oil prices fell sharply, which eased one source of inflation worry. Brent crude fell 4.73% to $93.67 a barrel, while US WTI crude fell 4.11% to $87.10 a barrel, after Trump said he was highly unlikely to order further strikes on Iran while negotiations continue.
Why it matters for beginners
A rebound after a sharp fall is normal, and it does not by itself mean the trouble is over. Last week investors sold because they worried that heavy artificial intelligence spending may not pay off quickly and that new political control in Congress could slow data center building. On Monday, some of those same investors decided prices had fallen far enough to buy again. That is what bargain hunting means: buying after a drop, in the hope that the fall was overdone.
The oil drop matters because energy prices feed into inflation. Cheaper oil can ease pressure on prices, which is one reason the market welcomed the news. At the same time, the strong jobs report from last week keeps the Federal Reserve cautious. We covered the data in our post on the US jobs report beating forecasts as employers added 165,000 roles in October. Employers added 165,000 jobs, far above the 65,000 economists had expected, and the unemployment rate slipped to 4.1% from 4.2%. Strong hiring supports spending, but it can also keep inflation higher, which is why traders have raised the odds of a December rate hike.
For beginners, the useful lesson is about time horizon. One day of selling, and one day of buying, are both single days. A broad market fall pulls a whole basket of stocks down, and a broad rise lifts it, so neither day tells you what will happen next week. If you want a refresher on how to think about market falls, see our guide on what risk in investing means in simple terms.
What to watch next
The next big test is the October consumer inflation data, due on Tuesday, November 10, at 8:30 a.m. ET. Economists polled by Reuters expect a 2.7% increase year over year. That number will shape the Federal Reserve’s decision at its December 8 to 9 meeting. Fed Governor Christopher Waller speaks after the CPI release, and Fed officials Michelle Bowman and Austan Goolsbee speak on Monday, so their words will also be watched closely.
Watch whether Monday’s rally holds into Tuesday, or whether selling returns after the inflation data. Also watch Nvidia: the board probe is a separate story from the wider market, and any new detail could keep the shares volatile even if the rest of the market calms down. Finally, watch oil: if tensions around Iran rise again, the price drop could reverse quickly.
FAQ
Why did stocks rise if Nvidia fell?
Nvidia fell because of its own news, the board investigation into its chief executive. The rest of the market rose because investors decided last week’s AI sell-off had gone too far, chip shares rebounded, and oil prices fell. One company can fall while the wider market rises, and that is why a single stock is riskier than a broad index.
Why did oil prices fall?
Oil fell after President Donald Trump said he was highly unlikely to order fresh strikes on Iran while negotiations continue. That eased worries about a disruption to oil supplies, so traders sold oil. Brent crude fell about 4.7% and US WTI crude fell about 4.1%.
What is the CPI report and why does it matter?
CPI stands for Consumer Price Index, and it measures how fast the prices of everyday goods and services are rising. The October report is due on Tuesday, November 10. Economists polled by Reuters expect a 2.7% rise from a year earlier. If inflation comes in hotter than expected, the Federal Reserve is more likely to raise interest rates in December, which usually weighs on stocks. If it comes in cooler, rate hike bets fall.
Does one good day mean the sell-off is over?
No. A single rebound does not confirm a bottom. The worries behind last week’s fall, about data center spending, artificial intelligence costs, and possible new regulation, have not gone away. The next inflation data and the Fed’s December decision will matter more than one day’s move.
Sources
This article is for general information and education only. It is not legal or financial advice.
