Nasdaq climbs as chip and AI-linked stocks bounce back
By Sinéad Carew and Tharuniyaa Lakshmi
Mon October 19, 2026
Today’s expert put it best. “Nothing changed between Friday’s close and this morning’s open, other than nothing bad happened over the weekend, and sentiment had gotten so negative that we were oversold to the point that a bounce was due.” And that’s exactly what happened in tech and particularly AI as monies flowed steadily back into both the Nasdaq and S&P. And as is usually the case, the monies came out of industrials and the defensive sectors. There were handsome gains all around and the Dow, though closing nominally in the red, bounced back and forth between a minus 140 and a plus 130.
With sentiment having changed back to pro-AI, all eyes are now on the coming Q3 reports, particularly from big tech. That shot the chip index up 1.6% snapping the longest losing streak since October 2008. Sentiment was also helped by Morgan Stanley upgrading Amazon, and JP Morgan and Goldman Sachs doing the same with several tech companies including CoreWeave, Nebius, Iren and Intel, pushing their gains from 2.4 to 5%. And as a side note, today is the 39th anniversary of the notorious stock market “Black Monday” crash on October 19, 1987 – the biggest crash in history – (by raw numbers only; the biggest % crash is still reserved for October 29, 1929.) Still anticipating Q3, volume came in well below the 17.26 average, closing at 15.27 billion.
DJ: 52,002.41 -175.28 NAS: 26,140.03
-572.99 S&P: 7,659.44
-84.62 10/16
DJ: 51,966.03 -36.38 NAS: 26,430.89
+290.85 S&P: 7,690.73
+31.29 10/19
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