Nasdaq climbs as chip and AI-linked stocks rebound from heavy selloff

what happened

The Nasdaq Composite led gains on Wall Street on Monday as investors came back to chipmakers and other AI-related stocks after a bruising selloff at the end of last week. The Philadelphia Semiconductor Index was on track to end an eight-day losing streak, during which it fell about 15.7%, its longest run of declines since October 2008.

On Friday the S&P 500 and Nasdaq posted their biggest weekly drop since late June, as concerns that higher interest rates could curb infrastructure investment weighed on stocks. According to Reuters, at 2:08 p.m. New York time the Dow Jones Industrial Average rose 0.03%, the S&P 500 gained 0.53% to 7,700.54 and the Nasdaq Composite rose 1.18% to 26,447.86. CoreWeave, whose shares plunged more than 25% last week over a $50 billion debt load, pared its losses after Goldman Sachs upgraded it to 'buy'. Amazon.com rose 4.8%, Intel gained nearly 3%, and Cleveland-Cliffs surged about 16% after beating analysts' third-quarter profit estimates.

why it matters

The central question for markets is how the costly AI infrastructure build-out will be financed, a concern that has increasingly pressured the companies driving the US bull market. Tesla and Meta are due to report on Wednesday and SpaceX on Tuesday. Rosenblatt Securities trader Michael James cautioned that the market is 'far from out of the woods' with many technology earnings reports still ahead.

market impact

Chip and AI stocks: rebound after selloff, with further direction tied to upcoming big-tech earnings

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