Tesla, Nvidia, Tech Stocks Bounce Back to Start Week

Major U.S. equities indexes gained ground on Monday, bouncing back from last week’s tech selloff, though the consequences of last week’s technology disruptions persisted. 

Investors kept an eye on political developments, which helped some stocks in the tech sector move higher. Anticipation of a slew of corporate earnings reports this week also lifted stocks.

The S&P 500 was 1.1% higher, while the tech-focused Nasdaq gained 1.6%. The Dow Jones Industrial Average advanced by 0.3% as it bounced back toward the record high it set last week. 

Clinical research company IQVIA Holdings (IQV) led the S&P 500 higher, moving up 9.2% after its earnings showed better-than-expected income and revenue. The company also raised its full-year earnings per share outlook. 

Tech stocks rebounded from last week’s sell off, as investors digested U.S. political developments related to President Joe Biden withdrawing from the presidential race and its consequences for trade and industrial policy. ON Semiconductor (ON), Lam Research (LRCX) and Applied Materials (AMAT) were each higher by more than 6%, while NXP Semiconductors (NXPI) were up 5.4%. 

Nvidia (NVDA) shares were higher by 4.8% as the chipmaker worked its way back from a decline of more than 9% last week, helped along by a price target upgrade to $140 by analysts at Piper Sandler.

Tesla (TSLA) shares jumped nearly 5% ahead of its earnings report tomorrow after markets close, when CEO Elon Musk is expected to update investors on company projects, including its robotaxi system and other self-driving technology. 

CrowdStrike (CRWD) continued its fall, dropping 13% as client businesses continued to work through the disruptions caused by last week’s tech outage, prompting analysts to point out the opportunity for some of the cybersecurity provider’s competitors. Delta Air Lines (DAL) shares dropped 3.5% as the air carrier was forced to cancel 36% of its flights on Sunday due to the tech outage. 

Verizon (VZ) shares fell 6.1% on investor reaction to a second-quarter earnings report that showedannual revenue growth of less than 1%, lower than analyst estimates, even after it added internet and mobile phone subscribers.  AT&T (T) shares were lower by 3% ahead of its report on Wednesday, while T-Mobile (TMUS) shares declined by 2.3%. 

Starbucks (SBUX) dropped more than 3%, giving back some of last week’s gains that came on reports that activist investor Elliott Investment Management had taken a stake in the global coffee chain. 

Shares of Air Products and Chemicals (APD) slipped 5.5% after its chief operating officer Samir Serhan resigned.