Artificial-intelligence stocks led a rebound on Wall Street Monday, recovering some of their losses from last week. The S&P 500 rose 0.5%, while the Nasdaq composite jumped 1%. However, the Dow Jones Industrial Average fell 76 points, or 0.1%. Global markets remained volatile, with European indexes dropping over 1% amid violent protests over the weekend.
The AI sector has been a standout performer, driven by heavy spending on technology. Last week, AI stocks tumbled due to concerns over rising borrowing costs, which could threaten the industry's growth. CoreWeave, a company that rents AI chips, rose 3.2% Monday after losing over a quarter of its value last week. Nvidia added 0.8%, significantly impacting the S&P 500 due to its large market value. SpaceX, which controls the xAI business, climbed 2.3%, with its founder Elon Musk pledging to give one share of SpaceX to “every kid in America” next year.
Investors are awaiting profit reports from key companies later this week, including Meta Platforms and Lam Research. Analysts expect a 29% growth in profits for S&P 500 companies from the prior summer. Cleveland-Cliffs surged 12.5% after reporting stronger-than-expected quarterly profits, with CEO Lourenco Goncalves calling it the company's strongest quarter in three years.
In Europe, protests over rising living costs and poor school conditions led to market declines. Germany’s DAX lost 1.4%, and the FTSE 100 slid 1.3% in London. Bond yields rose globally, with the 10-year Treasury yield climbing to 5.10% from 5.09% late Friday.