FiscalFusion

Big Tech and other U.S. stock market superstars resumed rallying on Monday, helping Wall Street recover most of last week’s losses as the S&P 500 climbed 1.5%, the Dow Jones Industrial Average rose 381 points, or 0.8%, and the Nasdaq composite jumped 2.3% for its best day since May. Nvidia powered the market higher with a 5.8% surge, rebounding after leading last week’s drop amid criticism that AI-driven stocks had risen too far, too fast, echoing comparisons to the 2000 dot-com bubble.

Taiwan Semiconductor Manufacturing Co.’s U.S.-traded shares gained 3.1% after reporting revenue growth of nearly 17% in October, while Palantir Technologies jumped 8.8% for the biggest gain in the S&P 500. Declines in health insurers, however, limited the market’s gains as uncertainty grew about whether Washington will extend expiring health care tax credits during the nation’s longest-ever government shutdown, even as the Senate took steps toward ending it; President Donald Trump suggested over the weekend that money going to “money sucking” insurers should instead go directly to people. Humana fell 5.4%, Elevance Health dropped 4.4%, and Centene sank 8.8%.

Berkshire Hathaway slipped 0.4% after CEO Warren Buffett warned shareholders that other companies may outperform Berkshire over coming decades due to its size as he prepares to step down in January. Tyson Foods rose 2.3% after reporting stronger-than-expected quarterly profit. Roughly 80% of S&P 500 companies reporting summer results have topped profit expectations, according to FactSet, helping justify big stock price gains since April; companies have also issued strong forecasts, with Bank of America strategist Savita Subramanian noting that analysts’ earnings expectations for 2026 have nearly returned to pre-“Liberation Day” tariff announcement levels.

The S&P 500 finished at 6,832.43, the Dow at 47,368.63, and the Nasdaq at 23,527.17. Overseas, markets rallied across Europe and Asia, with South Korea’s Kospi up 3% as SK Hynix climbed 4.5% and Samsung Electronics added 2.8%. In the bond market, the 10-year Treasury yield held steady at 4.11%..