Tech stocks surge, Wall Street wipes out last week's losses

The trading session on November 10 (ending early morning of November 11, Vietnam time), the US stock market ended the first session of the new week in bright green when all three major indexes increased sharply, led by large technology stocks and businesses related to artificial intelligence (AI). This momentum helped Wall Street almost erase all the losses recorded in the first week of decline after four consecutive weeks of increase before.

Wall Street regains green

Big Tech pulls the market up

The S&P 500 rose 1.5% to 6,832.43 points, the Dow Jones Industrial Average rose 381.53 points, or 0.8%, to 47,368.63 points, while the Nasdaq Composite jumped 2.3% to 23,527.17 points, its best session since May. The Russell 2000 index of smaller companies also rose 0.9% to 2,455.65 points.

The rally has been centered on Big Tech, with Nvidia in particular being the star of the AI ​​frenzy. Nvidia shares jumped 5.8%, providing the biggest boost to the market after plunging last week on concerns about high valuations. The rally is seen as a strong comeback for the tech sector after a series of corrections.

Nvidia's major partner, TSMC (Taiwanese chipmaker), also helped bolster investor confidence by reporting a 17% year-on-year increase in October revenue. However, experts say TSMC's growth has slowed compared to its previous boom period.

Meanwhile, Palantir Technologies, another “AI favorite,” rose 8.8%, the biggest gainer in the S&P 500, after investors returned to buying following last week’s better-than-expected earnings report.

Despite the broad green, other sectors held back the index’s gains. Notably, health insurance stocks fell sharply as uncertainty over the extension of the health care tax credit remains a hot issue in Washington that could lead to another prolonged government shutdown.

Specifically, Humana fell 5.4%, Elevance Health lost 4.4%, and Centene plunged 8.8%. President Donald Trump in a social media post over the weekend suggested that the insurance company subsidies should be sent directly to people so they can buy their own insurance, adding to market concerns.

Tyson Foods rose 2.3% after reporting a better-than-expected quarterly profit. Warren Buffett's Berkshire Hathaway fell 0.4% after he warned shareholders that "many other businesses will be able to operate more efficiently in the coming decades" and confirmed his plan to retire in January at age 95.

Positive business results and profit outlook 2026

About 80% of S&P 500 companies have reported quarterly profits that beat analysts' forecasts, reflecting the remarkable resilience of the U.S. corporate sector amid political and economic turmoil, according to data from FactSet.

Impact of the US government reopening

“Most companies still provide positive earnings outlooks, bringing analyst expectations for 2026 almost back to where they were before Mr. Trump’s global tax policy caused a stir in April,” said Savita Subramanian, chief strategist at Bank of America.

However, experts warn that the valuation of technology and AI groups has increased, so investors need to be cautious about the possibility of a short-term correction.

Another important factor that helped bolster market sentiment was the US Senate's tentative agreement over the weekend to end the government shutdown, which has lasted for weeks and disrupted the economy.

The reopening is expected to ease liquidity constraints, cool repo rates and help revive stalled economic data reports. Investors are looking forward to the return of employment, consumer spending and inflation figures, which are key to the Federal Reserve's assessment of the health of the economy.

Some data like the September jobs report could be released soon after the government reopens, but restoring the full release schedule could take some time, said Nancy Vanden Houten, chief economist at Oxford Economics.

The bullish sentiment was also reflected in the foreign exchange market, as riskier currencies such as the Australian dollar rose sharply, while safe-haven US Treasury bonds fell, pushing yields higher. This shows that investors are returning to risky assets, more confident in the US economic outlook as the risk of recession is assessed to have temporarily cooled.

“Ending the government shutdown could be a significant boost for the US economy in the final quarter of the year, helping to reduce the risk of recession and restore consumer confidence,” said Matthew Miskin, co-head of investment strategy at Manulife John Hancock Investments.

A strong rebound in tech stocks helped Wall Street erase most of last week's losses, but experts say investors still need to be cautious. Potential risks - from high valuations in tech stocks to disruptions in economic data - could cause market volatility in the coming weeks.

Meanwhile, progress on a budget deal in the House of Representatives, as well as issues related to health care and tax credits, remains unresolved, meaning that the “recovery picture” for Wall Street is brighter but not yet completely solid.

The trading session on November 10 marked a strong recovery in the US market, with the focus on the return of Big Tech and AI stocks. Although the current rally reflects optimism about corporate earnings prospects and the reopening of the government, investors still need to be wary of unstable economic fundamentals.

Wall Street may be “green” again, but to maintain that green color, the market needs more positive signals, from clear economic data, transparent monetary policy to strong investor confidence in the final stage of the year.

Source: https://thoibaonganhang.vn/co-phieu-cong-nghe-but-pha-pho-wall-xoa-sach-khoan-lo-tuan-truoc-173359.html