NEW YORK — The Nasdaq 100 gained 2.5 percent Monday, closing at 25,046, as investors made targeted re-entries into chipmakers and cloud infrastructure providers following a period of broad selling in AI-linked equities.
The advance was narrow by design. Nvidia rose 3.0 percent to $195.64. Microsoft gained 15.2 percent to $449.87 and Amazon climbed 4.4 percent to $236.66—gains concentrated in companies with direct exposure to AI infrastructure and enterprise cloud spending.
Not all major technology stocks participated. Meta Platforms dropped 9.3 percent to $531.28, Apple declined 1.9 percent to $331.81, and Alphabet fell 1.2 percent to $332.66. The divergence signals selective capital rotation rather than a broad sector recovery.
The Nasdaq 100's 2.5 percent gain outperformed the S&P 500, which rose 1.3 percent to 7,409, and the Dow Jones Industrial Average, which increased 0.7 percent to 51,946.
Recent macroeconomic data supported the shift in sentiment. Reports indicate the U.S. economy is maintaining a healthy growth trajectory without accelerating inflation—a soft-landing outcome that reduces pressure on the Federal Reserve to tighten monetary policy further. A stable rate environment directly supports growth stock valuations by lowering the discount rate applied to future earnings.
Sustained consumer and enterprise spending on digital services underpins demand for cloud computing and advanced semiconductors, contrasting with slowdown fears that weighed on markets earlier in the month.
Risks remain. Upcoming earnings reports from major tech firms could expose continued sector-specific challenges, and any unexpected inflation data or shift in Federal Reserve commentary could reset rate expectations and pressure growth stock multiples.
