Dow jumps 328 points as Oracle and Nvidia deals boost tech sector

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US stocks rallied on Monday on new tech-sector deals and shifting investor sentiment.
Oracle leaped after the company won its bid to partner with TikTok’s US operations.
Nvidia’s announcement that it would purchase Arm Holdings from SoftBank in a $40 billion deal boosted semiconductor stocks including Micron and Qualcomm.
Oil traded mostly lower after OPEC lowered its forecast for the commodity market’s demand recovery. West Texas Intermediate crude fell as much as 1.4%, to $36.82 per barrel.
Watch major indexes update live here.

US equities gained on Monday as a spate of new deals fueled a tech-stock rally from recent lows. Apple, Facebook, and Tesla all climbed as investors turned back to mega-cap companies that have been slammed in recent weeks.

Oracle surged after the company confirmed its partnership bid for TikTok’s US operations was selected by ByteDance. The firm is expected to take a sizeable stake in the platform. News of the partnership came days before the White House’s deadline for a deal.

Microsoft underperformed the tech sector after its offer to partner with TikTok was denied.

Here’s where US indexes sat at the 4 p.m. ET market close on Monday:

S&P 500: 3,383.53, up 1.3%

Dow Jones industrial average: 27,993.33, up 1.2% (328 points)

Nasdaq composite: 11,056.65, up 1.9%

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Semiconductor stocks such as Qualcomm, Micron, and TSMC gained after Nvidia said it would buy Arm Holdings from SoftBank in a $40 billion deal. The acquisition gives Nvidia a stronger foothold in the mobile-computing industry, as Arm designs the architecture for chips used in nearly all mobile devices.

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In the healthcare sector, AstraZeneca resumed a phase-three trial in the UK after pausing it last week because of safety concerns. Gilead announced it would buy the biopharmaceutical firm Immunomedics for $21 billion; shares of the latter firm spiked on news of the deal.

Sports-betting platform DraftKings surged after announcing a new deal with ESPN in which it will be the media giant’s sole provider of daily fantasy sports. DraftKings will also serve as ESPN’s co-exclusive partner for gambling link-outs, according to a press release.

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Real estate stocks gained the most through the session, followed closely by health care and tech names.

Energy stocks lagged amid oil demand concerns. Industry giant BP said in a Monday report that fuel consumption may never return to pre-pandemic highs and could plunge as much as 60% by 2050.

The S&P 500 recently experienced its first back-to-back weekly losses since March. The benchmark sank through last week as …read more

Source:: Business Insider

      

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