Nasdaq Composite: Nvidia Rebound and EA Buyout Drive US Indices and Tech Stocks Higher Today

Nasdaq Pushes Higher in Morning Trade as Nvidia and AI Stocks Rebound; EA Jumps on $55B Buyout

Stocks climbed in early Monday trading as the Nasdaq Composite led gains, up 0.8%, driven by a rebound in AI chipmakers. The S&P 500 rose 0.4%, while the Dow hovered near flat. After last week’s pullback in tech, Nvidia advanced 2%, reviving optimism in the AI trade. Electronic Arts surged 4% following a $55 billion agreement to take the company private, fueling risk appetite in the broader market.

Are AI Chipmakers Like Nvidia Back in Focus?

Nvidia’s move higher helped stabilize tech sentiment after concerns last week about the scalability of AI infrastructure. AMD and Micron added 2% and 4% respectively, supporting a recovery in the sector. Lam Research rose 3% after a bullish call from Deutsche Bank, citing improved demand for chip equipment. Oracle, which fell sharply last week, bounced 1%. Intel pulled back 1.7% as the stock showed signs of being technically overbought.

Barclays strategist Venu Krishna said the AI capital expenditure cycle remains intact, calling it a major support for the S&P 500 given the index’s tech weighting.

Which Sectors Are Leading and Lagging in the Morning Trade?

Technology topped the leaderboard with a 1.03% gain, while industrials and communication services each rose over 0.5%. Energy was the worst performer, dropping 1.6% as oil prices slipped, dragging the sector lower. Consumer staples and utilities also edged down.

Cannabis stocks made outsized moves, with the AdvisorShares Pure U.S. Cannabis ETF (MSOS) surging 22% after a social media post by Donald Trump supporting cannabinoid use among seniors. Aurora Cannabis jumped 14%. M&A activity was another tailwind—besides EA’s rally, U.S. deal volume has surpassed $1 trillion so far this year, up 29% year-over-year, according to Goldman Sachs.

What Economic Signals Are Shaping Trader Expectations?

August pending home sales rose 4%, far above expectations for flat growth. Mortgage rates eased slightly, helping affordability in key regions like the Midwest. The average 30-year fixed mortgage rate fell from 6.75% to 6.58%, according to Bankrate.

Goldman Sachs upgraded global equities to overweight for the near term, citing strong earnings growth, potential Fed easing, and supportive fiscal policies. While investor sentiment hasn’t fully caught up with equity gains, positioning remains cautious—leaving room for further upside if economic data holds steady.

Where Is the Market Headed Next?

With AI stocks regaining ground and economic data offering upside surprises, the Nasdaq is tracking toward a solid monthly performance, up 5% so far.

Traders are now looking ahead to Friday’s nonfarm payrolls report, which could determine whether the Fed remains in a holding pattern.

A balanced jobs number—neither too hot nor too weak—could help extend the current rally through month-end.

More Information in our Economic Calendar.