Stocks linked to artificial intelligence led a modest rebound on Wall Street Monday, recovering some losses from the previous week, while the broader market and global equities showed uneven performance amid volatility.
The S&P 500 climbed 0.4 percent following its worst weekly decline since June. Technology-heavy Nasdaq composite advanced 1.1 percent, buoyed by strong gains in AI-related shares. Conversely, most other U.S. stocks outside of AI and tech sectors slipped. The Dow Jones Industrial Average fluctuated between gains and losses throughout the session before closing down 36 points, or 0.1 percent.
European markets faced steeper losses, with indexes falling more than 1 percent. Investors reacted to violent protests in France that raised concerns about potential government spending increases to address public unrest. Such fiscal measures could intensify pressure on bond markets and push yields higher across the region.
Amid these broader uncertainties, AI stocks remained a focal point as the sector has driven market momentum over recent years. Heavy investment in AI technologies—including chips and data centers—has propelled these stocks to record highs. However, concerns about rising borrowing costs have recently rattled the sector, given that much spending has been fueled by debt. U.S. Treasury yields hit multi-year or even multi-decade peaks, raising the cost of capital for companies and investors alike.
Nvidia, the largest stock on Wall Street by market value, gained 1.4 percent Monday and was a key contributor to the S&P 500’s advance. SpaceX, associated with the AI venture xAI, rose 1.3 percent to $147.96 following Elon Musk’s announcement of plans to distribute one share of SpaceX stock to every child in America next year. This move came shortly after AI startup Anthropic pledged to allocate 5 percent of its forthcoming initial public offering to a public benefit fund.
Despite underlying strength, AI shares showed volatility. Cloud-computing firm CoreWeave—known for renting AI chips to customers—initially surged over 7 percent but reversed course, ending with a 0.4 percent decline after losing more than 25 percent last week. Investors await upcoming earnings reports from key players in the AI and semiconductor sectors, which are expected to provide further insight into the health of AI-related spending.
Meta Platforms is scheduled to release quarterly results Wednesday as it advances its Muse AI project. Lam Research, a supplier of semiconductor manufacturing equipment, will also report earnings on the same day.
Overall, expectations for U.S. corporate profits remain elevated, with analysts forecasting a 29 percent growth for companies in the S&P 500 compared to the prior summer, despite ongoing challenges such as geopolitical tensions, inflation, and bond market pressures.
Meanwhile, Cleveland-Cliffs saw its shares jump 16.3 percent after posting a stronger-than-expected quarterly profit. CEO Lourenco Goncalves described the quarter as the company’s best in three years and noted an improved profit outlook for 2027 compared with projections three months ago.
Globally, AI-related gains contributed to a 1.8 percent rise in South Korea’s Kospi index, helping the market recover some of its steep 14.5 percent drop from the prior week.