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

Tech stocks got off the mat Monday. Most of Wall Street stayed pinned down.

Palantir ( PLTR ) and Datadog ( DDOG ) jumped over 4% each, joined by Snowflake ( SNOW ) and a broad recovery in chip stocks after last week's beating.

Western Digital ( WDC ) and Sandisk ( SNDK ) led the storage rally, while Micron ( MU ), Intel ( INTC ), and Nvidia ( NVDA ) also gained. More than 9 in 10 semiconductor names and roughly 4 in 5 software stocks advanced in Yahoo Finance's watchlists.

Buyers had fresh encouragement. Bernstein upgraded Datadog , citing stronger AI-related demand. Palantir announced a government-cloud partnership, although its rebound reached a potential selling zone around $195–$200 . Getting through that area would put its recent record high back in play and lend support to the broader recovery after last week's failed breakouts .

Amazon ( AMZN ) supplied some heavyweight help. Shares climbed 5%, recovering last week's losses after Morgan Stanley named the company a top pick . Tesla ( TSLA ) also rallied.

Together, those gains helped the Nasdaq Composite ( ^IXIC ) rise 1.1%, and the S&P 500 ( ^GSPC ) add 0.4%.

But buyers weren't handing out second chances to everyone.

"We can't just go and buy all the AI companies because they all dipped," Mark Malek, chief investment officer at Siebert Financial, told Yahoo Finance .

CoreWeave ( CRWV ) provided a case in point. Its early rally after a Goldman Sachs upgrade to Buy disappeared. Shares finished slightly lower at $61.12, just above July's closing low of $60.82.

The trouble wasn't limited to CoreWeave. Nearly two-thirds of S&P 500 stocks fell, and the Invesco S&P 500 Equal Weight ETF ( RSP ) lost ground. The broader index rose, but most of its stocks fell.

Tuesday's test is whether more stocks join the rebound and CoreWeave can pull away from its July low.

Internal AI tools helped analyze interview transcripts, research, and draft this post. Humans reviewed, edited, and fact-checked this post before publication.

Jared Blikre is the global markets and data editor for Yahoo Finance. Follow him on X at @SPYJared or email him at jaredblikre@yahooinc.com.