WiremarketsDextape brief
US Stock Market Fails To Recover as $700 Billion Comeback Collapses
Jim Cramer called the biggest tech takeout. Stocks added $700 billion, then lost it as AI and chip shares slid.
Dextape brief
US equities gave back early Monday gains, with roughly $700 billion in market value vanishing within hours. The S&P 500 finished down 0.5% after rising as much as 1.1%, and the Nasdaq Composite fell 1.1%. The reversal followed a post by CNBC host Jim Cramer about Marvell's $115 billion deal for Lumentum, which revived jokes about his market predictions.
Lower oil prices, falling to $104, had initially lifted stocks on hopes of possible US-Iran peace talks. Investors then doubted Big Tech's AI spending would pay off. Oracle dropped nearly 9% after announcing a $20 billion stock and bond raise, and Marvell lost almost 13%. White House economic adviser Kevin Hassett said AI firms have plenty of cash. Nearly 70% of S&P 500 companies still closed higher. Tuesday's midterm elections and Friday's jobs report are next.
Why it matters: Sharp reversals in the largest tech stocks show that renewed doubts about AI spending returns can quickly erase broad market gains, affecting crypto readers tracking wider risk sentiment.
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