Nasdaq 100 and S&P500: Tech Stocks Pull Back in Pre-Market After AI Rally

The weakness is centered in tech. CoreWeave dropped 10% in premarket after issuing soft guidance, triggering fresh concerns about AI valuations. Nvidia also slipped more than 1% after SoftBank announced it had sold its entire $5 billion stake. That’s weighing on the broader chip and AI complex, which had led Monday’s rebound.

Was Monday’s Rally Just a Bounce?

The Nasdaq Composite posted its best session since late May, climbing 2.3% as traders stepped in to buy beaten-down tech stocks. Nvidia soared 5.8%, fueling more than a quarter of the S&P 500’s gain for the day. Alphabet jumped 4%, while Microsoft snapped an eight-day losing streak with a 1.9% advance.

The move came as Senate progress toward ending the government shutdown helped reduce a major risk overhang. The shutdown bill passed Monday night and now heads to the House.

Why Does the Shutdown Deal Matter?

Markets cheered the Senate vote not just because it ends immediate uncertainty, but because it restarts the flow of key economic data. Without a deal, the Fed risked heading into the December meeting without a full read on the economy.

Carson Group’s Sonu Varghese noted that extending the shutdown much longer could’ve hurt consumption, delayed paychecks, and disrupted travel — all of which would’ve left a mark on GDP.

What’s Moving in Individual Names?

Outside of AI, Paramount Skydance climbed over 5% after announcing plans to cut an additional $1 billion in costs and hike prices on Paramount+ in early 2026.