U.S. Stocks Rebound Led by Tech as Nvidia’s $100B OpenAI Bet Fuels AI Optimism

Key Takeaways:

*U.S. equities rallied, with the Nasdaq up 0.7%, fueled by Nvidia’s 3.9% surge after reports of a $100B OpenAI investment plan.

*Sentiment was buoyed by the Fed’s first 2025 rate cut and signals of further easing, supporting risk appetite.

*Traders eye speeches from Fed officials this week for dovish cues that could extend Wall Street’s rally.

Market Summary:

U.S. equities rallied decisively on Monday, erasing losses from last week’s post-Fed profit-taking phase, with technology shares leading the advance. The Nasdaq Composite outperformed, gaining 0.7%, while the S&P 500 and Dow Jones Industrial Average also closed higher in a broad-based risk-on session.

The rally was ignited by a surge in Nvidia Corp., which climbed 3.9% following reports the chipmaker plans to invest $100 billion in OpenAI over the coming years. The announcement revitalized enthusiasm around artificial intelligence infrastructure spending, lifting semiconductor and big-tech peers across the board.

Monetary policy tailwinds further supported the rebound, as investors continued to price in a supportive outlook following the Federal Reserve’s first rate cut since 2025. The central bank’s signal that additional easing could follow has bolstered the case for lower borrowing costs and higher equity valuations, particularly for growth-oriented sectors.

Market participants now turn to a series of scheduled speeches from Fed officials this week for further guidance on the pace and extent of the anticipated easing cycle. Dovish commentary is likely to extend the rally, though any hesitation regarding the inflation outlook could reintroduce near-term volatility.

Technical Analysis 

Nasdaq, H4:

The Nasdaq Composite advanced 0.7% in the previous session, breaking to a new all-time high of 24,811.00 as technology shares extended their recent rally. The index has consistently established a pattern of higher highs, demonstrating sustained bullish momentum with only minor retracements that have consistently attracted fresh buying interest.

The upward move is supported by strong momentum indicators. The Relative Strength Index has advanced into overbought territory, reflecting intense buying pressure, while the Moving Average Convergence Divergence continues to trend higher, confirming that bullish momentum is accelerating. This technical alignment suggests the potential for further gains in the sessions ahead.

The index now trades in uncharted territory with no significant overhead resistance. The next psychologically important level would be the 25,000 mark, though continued momentum and institutional inflows are likely to be the primary drivers of further advances.

Resistance Levels:24,821.00, 25,040.00

Support Levels: 24,660.00, 24,400.00

Nvidia, H4

Nvidia Corp. shares advanced more than 3% in the previous session, testing the upper boundary of a five-week consolidation range near the $184.00 level. A decisive breakout above this resistance zone would signal a resumption of the stock’s primary uptrend and potentially open the path toward further record highs.

The shares have been trading within a defined range between $168.00 and $184.00, reflecting a period of equilibrium following their previous significant advance. A sustained move above the $184.00 threshold, particularly if accompanied by strong volume, would indicate a resolution of this consolidation phase in favor of the bulls.

Momentum indicators support a constructive near-term outlook. The Relative Strength Index has moved into overbought territory, reflecting robust buying pressure, while the Moving Average Convergence Divergence has crossed decisively above its zero line, confirming a shift toward positive momentum.

Resistance Levels:189.65, 207.30

Support Levels: 177.40, 168.65