U.S. stock markets rose on Monday amid ongoing volatility in financial markets worldwide, driven in part by mixed performances within the artificial intelligence (AI) sector. The Standard & Poor’s 500 index increased by 0.7 percent, recovering losses from the previous week and closing within 1.8 percent of its all-time high reached earlier this month. The Dow Jones Industrial Average gained 146 points, or 0.3 percent, while the Nasdaq composite rose 0.8 percent.

Among individual stocks, Nvidia led gains with a 2.4 percent increase, helping the chipmaker rebound from three consecutive losing weeks—their longest downturn since June. However, other companies in the AI space displayed unsettled trading patterns amid concerns about the rising costs of capital. Companies face higher borrowing expenses, which could limit their ability to invest in data centers and purchase AI chips, factors critical to sustaining growth in this sector.

Meta Platforms provided a notable example of this volatility. The company announced plans to raise $35 billion through a stock sale to fund its AI initiatives and suggested it might raise an additional $60 billion by offering shares of a newly created stock class once trading begins. Meta’s stock initially fell more than 2 percent but then fluctuated, ultimately ending the day down about 1.9 percent. The company reported that chipmakers Nvidia, Advanced Micro Devices, and Broadcom have expressed interest in purchasing up to $5 billion in Meta’s offering. While this signals strong support from firms that could benefit from further AI investment, it also sparked criticism from some observers wary of so-called "circular financing," which they say could amplify risks if AI growth fails to meet expectations.

SpaceX, led by Elon Musk and operating the xAI business, experienced similar swings following an announcement of a roughly $40 billion deal to lease AI computing power with an entity managed by Apollo Global Management. The company’s stock dropped nearly 2 percent initially before recovering to a 1.9 percent gain and then closing down 0.4 percent. Musk recently cautioned that many companies renting out AI computing resources are at risk due to tightening lending conditions, warning of potential consolidation in the industry.

Overall, the S&P 500 rose 53.09 points to close at 7,676.77, the Dow gained 146.42 points to finish at 52,361.58, and the Nasdaq added 214.04 points to 26,169.38. Investors are awaiting key earnings reports later this week from major technology companies such as Alphabet, Microsoft, and Amazon, which are expected to provide further insights on AI-related spending and its impact on profitability and productivity.