2026-02-09 22:05
publication
2026-02-09 22:05
On Monday, investors were rushing to buy shares of exactly the same companies that they had sold almost panic-stricken last week. It was the change in attitude towards the AI and IT sector that allowed the New York indexes to continue Friday's recovery.
The S&P500 index ended Monday's session at 6,964.82 points, which meant an increase of 0.47% compared to Friday's reference price. The benchmark rose almost 2% on Friday after falling for six of the previous seven sessions.
The Nasdaq Composite increased by nearly 1%, reaching 23,238.67 points. The Dow gained a modest 0.04% after climbing above 50,000 points for the first time on Friday, rising almost 2.5% that day.
The strongest increases were observed among IT companies and large technology concerns related to the AI sector. That is, exactly in these two industries whose valuations suffered the most at the end of January and the beginning of February. But today, investors were reaching for the heavily discounted shares of IT giants. App Lovin's shares rose by 13%, while Palantir's shares rose by 5.2%.
In addition, there was a rebound in big tech related to the boom in generative AI. Microsoft's stock went up by over 3%, Nvidia's by 2.5%, Meta's by 2.4%, and Broadcom's by 3.3%.
– You saw a rapidly oversold market where a bit of good news could take us way up. In the technology and IT sectors, valuations have been stretched too much, said Keith Lerner, managing director at Truist Advisory Services, quoted by Reuters.
If there was any correction at all (and it was difficult, because at the worst moment in February the S&P500 lost only 3% to the all-time record in January), it has now come to an end. It lasted three whole sessions and reduced the S&P500 by 3%. Now it is back within range of 7,000 points.
It is worth keeping in mind that new catalysts for Wall Street will appear only in the second part of the week. On Wednesday, the Bureau of Labor Statistics will release its “overdue” Friday report on the U.S. labor market. On Friday, the January CPI inflation reading for the United States will be released.
K.K
