Palantir, Datadog and chip stocks bounce back as Amazon lifts Wall Street

On Monday, technology stocks made a notable recovery, although the majority of Wall Street remained under pressure. Companies such as Palantir Technologies (PLTR) and Datadog (DDOG) each saw their shares increase by over 4%. They were joined by Snowflake (SNOW) and a broad resurgence in the semiconductor sector, which had faced significant declines in the previous week.

In the storage segment, Western Digital (WDC) and Sandisk (SNDK) were at the forefront of the rally, while major chip manufacturers like Micron (MU), Intel (INTC), and Nvidia (NVDA) also experienced gains. According to Yahoo Finance's monitoring lists, more than 90% of semiconductor companies and approximately 80% of software firms reported increases in their stock prices.

The upward momentum was fueled by new encouragement for investors. Bernstein upgraded Datadog, highlighting a surge in demand linked to artificial intelligence (AI). Additionally, Palantir revealed a partnership focused on government cloud services. However, the stock's rebound approached a crucial selling range between $195 and $200. Successfully breaking through this level could potentially restore its recent peak and support a broader market recovery following last week’s unsuccessful attempts to rally.

Amazon (AMZN) played a significant role in boosting market sentiment, with its shares rising by 5% and recovering from previous week’s losses after Morgan Stanley designated it as a top investment choice. Tesla (TSLA) also saw positive movement in its stock price.

These gains contributed to a 1.1% increase in the Nasdaq Composite (^IXIC) and a 0.4% rise in the S&P 500 (^GSPC). However, the optimism did not extend to all stocks on the market.

Mark Malek, chief investment officer at Siebert Financial, cautioned against indiscriminately purchasing all AI-related stocks that had recently dipped. "We can't just go and buy all the AI companies because they all dipped," he stated in an interview with Yahoo Finance.

CoreWeave (CRWV) exemplified this situation. After receiving a "Buy" rating from Goldman Sachs, the stock initially surged but ultimately closed slightly lower at $61.12, remaining just above its closing low of $60.82 from July. This trend of struggle was not isolated to CoreWeave; nearly two-thirds of the stocks in the S&P 500 saw declines, and the Invesco S&P 500 Equal Weight ETF (RSP) also experienced a downturn. While the overall index managed to rise, the majority of its constituent stocks did not follow suit.

Looking ahead to Tuesday, the key question will be whether more stocks can join the recovery trend and if CoreWeave can distance itself from its July lows.

This report utilized internal AI tools to assist in analyzing interview transcripts and drafting the content, with human editors reviewing and fact-checking the information prior to publication.

Jared Blikre serves as the global markets and data editor for Yahoo Finance. He can be followed on X at @SPYJared or contacted via email at jaredblikre@yahooinc.com.