Source: Sharecast
"Wall Street started the week in a better mood, with the AI sell-off seemingly over for the time being and chip stocks back on the menu," said Danni Hewson, head of financial analysis at AJ Bell.
The Dow was 0.1% lower by the close of play, but the S&P 500 rose 0.4% the Nasdaq jumped 1.1%. The Nasdaq's gains came after the tech-heavy index tumbled 4.5% last week to settle at its lowest level since 16 September.
“Earnings updates from SpaceX, Netflix and Meta are among those to be delivered this week, and the mood could sour very quickly. But with oil prices falling slightly today, many investors may be taking advantage of recent dips to pad out portfolios," Hewson said.
However, sentiment around the AI trade remained fragile after CNBC reported that Anthropic's revenue growth slowed in the third quarter, raising fresh questions over how quickly the AI build‑out can continue.
Front-month Brent crude futures were down 0.3% at $109.55 a barrel while WTI fell 0.5% to $98.54 a barrel after as US President Donald Trump seemingly decided to side with Russia in its war against Ukraine and waive bi-partisan legislation that would impose further sanctions on Moscow.
Oil markets were also drawing an amount of investor attention as geopolitical risks intensified as ship attacks in the Persian Gulf increased, while Ukraine and Russia exchanged strikes on energy infrastructure over the weekend, including a Ukrainian hit on an oil terminal in St Petersburg.
In equity news, shares in Silence Therapeutics more than doubled on Monday, after the US-listed British biotech agreed to be taken over by Germany’s Merck in a $1.3bn deal. Under the terms of the acquisition, Silence shareholders will receive $20 in cash per American depositary share, with each ADS representing three ordinary Silence shares. The all-cash offer represents a 130% premium.
JPMorgan Chase finished lower after announcing it has committed $5bn in equity investments and financed or facilitated more than $230bn in transactions during the first year of its $1.5trn, 10-year Security and Resiliency Initiative. The $5bn committed was directed towards companies involved in defence technology, battery storage, automated manufacturing and other emerging technologies.
Intel performed well after JPMorgan upgraded the stock from 'underweight' to 'neutral', with the bank saying "our confidence is building" about the company's turnaround.
On the macro front, the National Association of Housebuilder's October housing market index revealed that sentiment in the industry has dropped to a 14-year low. The gauge fell from 33 to 29, below the consensus forecast of 31 to register its lowest level since 2012.