Nasdaq rises 1.1% as chip stocks rebound; Indian markets shut for Dussehra
Representative image: sergeitokmakov / Pixabay
The Nasdaq rose 1.11% on October 19, 2026 as chip and AI stocks recovered, while NSE and BSE are closed on October 20 for Dussehra and reopen on October 21.
What Happened
US technology shares recovered on Monday, October 19, 2026, after a sharp sell-off the previous week. The Nasdaq Composite rose 1.11% to close at 26,430.89 and the S&P 500 gained 0.41% to 7,690.73, while the Dow Jones Industrial Average slipped 36.38 points, or 0.07%, to 51,966.03 at the New York close, about 1.30 am India time on October 20. Indian investors cannot react today: the National Stock Exchange and BSE are closed on Tuesday, October 20, for Dussehra, and trading resumes on Wednesday, October 21.
Key Facts
- Nasdaq Composite: up 1.11% to 26,430.89 on October 19.
- S&P 500: up 0.41%, or 31.29 points, to 7,690.73.
- Dow Jones Industrial Average: down 0.07%, or 36.38 points, to 51,966.03.
- The PHLX Semiconductor Index, which tracks chipmakers, rose about 2% after falling for eight straight sessions, a drop of about 15.7%.
- Among large gainers were Amazon, up about 4.9%, Palantir, up about 4.4%, Tesla, up about 3.7%, and memory-chip maker Micron, up about 3%.
- Meta Platforms and Apple slipped slightly, by about 0.5% and 0.1%.
- NSE and BSE equity, derivatives and currency segments are shut on October 20; the commodity exchange MCX holds only an evening session from 5 pm.
Why It Matters
Last week was the roughest stretch for US technology shares in months. The S&P 500 lost nearly 2% over the week, its biggest weekly fall since late June, and the Nasdaq dropped about 4.5%, ending a four-week winning run. The selling was driven by worries over the heavy spending and borrowing behind artificial intelligence, as well as hot US inflation data that revived talk of further interest-rate rises by the US Federal Reserve.
Monday's bounce was led by the same companies that fell hardest. Chipmakers and memory makers, whose sales depend on the build-out of AI data centres, recovered part of their losses, and analysts' upgrades of some names helped. The Dow, which holds fewer technology companies, ended almost flat. It was a relief rally rather than a turn in the trend: it recovered only a fraction of the previous eight days' losses in chip stocks.
The coming days matter more. Several of the largest US companies, including Tesla, Meta Platforms and Netflix, report quarterly results this week. Their numbers, and what they say about AI spending, are likely to decide whether Monday's recovery lasts.
For India, US technology shares are an important signal. Indian IT services companies earn a large part of their revenue from American clients, and global investors often move money in and out of emerging markets such as India based on the mood on Wall Street. Indian shares fell sharply on Monday, October 19, as private bank shares, disappointing company results and higher crude oil prices weighed on sentiment. Because the Indian exchanges are shut on Tuesday, the first chance for Indian markets to respond to Monday's US rebound, and to whatever happens in US trading on Tuesday, comes on Wednesday morning.
| Index | Close on Oct 19 | Change |
|---|---|---|
| Nasdaq Composite | 26,430.89 | Up 1.11% |
| S&P 500 | 7,690.73 | Up 0.41% |
| Dow Jones | 51,966.03 | Down 0.07% |
Impact
Short-term: With NSE and BSE closed on October 20, trades made on Monday, October 19, will settle on October 21. Indian investors will see two US sessions before their own markets reopen on Wednesday. MCX commodity traders have an evening session from 5 pm today.
Long-term: The direction of US technology shares, and of AI spending by the biggest companies, will keep influencing foreign investment flows into Indian shares and the outlook for Indian IT services firms. This week's US results season is the next test.
Who is affected: Indian investors and traders, holders of US shares through international investing platforms, Indian IT companies whose clients are American technology and finance firms, and fund managers who track global markets.
Key Takeaway
US chip and AI stocks recovered part of last week's losses on October 19, and with Indian exchanges shut for Dussehra on October 20, Indian markets will first respond on Wednesday, October 21.
Questions and Answers
Is the Indian stock market open on October 20, 2026?
No. The NSE and BSE are closed on Tuesday, October 20, for Dussehra, including equity, derivatives and currency segments. Trading resumes on Wednesday, October 21. MCX holds an evening session from 5 pm.
How did US markets close on October 19, 2026?
The Nasdaq Composite rose 1.11% to 26,430.89 and the S&P 500 gained 0.41% to 7,690.73, while the Dow Jones Industrial Average fell 0.07% to 51,966.03.
Why did US tech stocks rise on Monday?
Investors bought back chip and AI-linked shares after an eight-session slide in semiconductor stocks of about 15.7%. Memory-chip makers and large technology names such as Amazon, Palantir and Tesla led the gains.
What should Indian market watchers look for next?
Quarterly results this week from large US companies such as Tesla, Meta Platforms and Netflix, and how US markets trade on Tuesday, before Indian exchanges reopen on Wednesday, October 21.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
Sourced and fact-checked by the Peepals Global Editorial Team
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