Nasdaq leads Wall Street higher as AI stocks rebound before busy earnings week

what happened

On Monday, the S&P 500 and the Nasdaq Composite both moved higher as shares tied to artificial intelligence bounced back from heavy losses in the previous week. Reuters reported that last week was the sharpest weekly decline for both indexes since late June, driven by fears that higher interest rates could hold back spending on AI infrastructure. Oil also helped sentiment: Brent crude traded near $108 a barrel, down about 1.7%, after US President Donald Trump decided to waive some sanctions on Russia.

CoreWeave, whose shares had sunk more than 25% last week over concerns about its $50 billion debt load, gained 3.1% on Monday. Goldman Sachs raised its rating on the data center firm to buy from neutral, arguing that the drop presented a buying opportunity. Chipmakers also rallied, with Broadcom up 3.2%, Micron up 5.3% and the Philadelphia Semiconductor Index gaining 3.7%.

The Dow Jones Industrial Average was little changed. Attention now turns to a busy earnings week, with SpaceX due on Tuesday and Meta and Tesla on Wednesday.

why it matters

The sell-off last week was tied to higher interest rates and worries about funding for expensive AI infrastructure, which weighed on data center operators. CFRA Research strategist Sam Stovall has warned that the tech selloff may not be over yet, so the rebound calls for caution. Upcoming results from the largest companies will show how sustainable their AI spending and debt levels look in a higher-rate environment.

market impact

US stock indices: AI and chip shares rebound; Brent under pressure as Russia sanctions are eased

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