The Nasdaq Composite rose on Monday as investors returned to technology and artificial intelligence-related stocks following last week’s sharp selloff, while markets looked ahead to earnings from major US companies.
The tech-heavy index gained 1.1%, while the S&P 500 advanced 0.4%. The Dow Jones Industrial Average finished slightly below the flatline.
The rebound followed a difficult week for US equities, with the S&P 500 falling nearly 2% and the Nasdaq declining 4.5%.
Both indexes recorded their biggest weekly losses since late June.
The information technology sector also posted its worst weekly performance since April 2025.
Investors have become increasingly concerned about the cost of financing AI infrastructure and whether future earnings growth will justify the substantial investments being made across the sector.
Chip stocks recover as semiconductor index ends losing streak
Semiconductor stocks helped support the market recovery.
Intel shares climbed around 2% after JPMorgan upgraded the stock to neutral from underweight. Advanced Micro Devices gained 1%, while Micron Technology rose 2%.
The Philadelphia Semiconductor Index ended an eight-session losing streak during which it had fallen approximately 15.7%, marking its longest run of declines since October 2008.
The recovery followed heavy selling in technology stocks last week, when investors reassessed the financial risks associated with the AI investment boom.
The technology sector was the most net-sold global sector, according to Goldman Sachs, with hedge funds selling a record proportion of their technology holdings.
However, the rebound was uneven. CoreWeave shares fell around 0.44%, reversing earlier gains despite Goldman Sachs upgrading the cloud computing company to buy from neutral.
CoreWeave’s stock plunged more than 25% last week amid concerns about its debt burden, reported at around $50 billion.
The company’s credit default swaps also reached distressed levels, reflecting growing unease in the corporate bond market.
AI financing concerns remain a key market risk
Investor concerns intensified after reports that Anthropic generated $16.8 billion in third-quarter revenue, up from $11.6 billion in the second quarter.
Although revenue increased, the figures prompted questions about the pace of growth relative to the scale of investment in AI infrastructure.
Market participants are increasingly assessing whether AI-related companies can generate sufficient returns on capital to justify their borrowing and infrastructure spending.
The recent pressure on CoreWeave has also raised questions about the resilience of AI investments in an environment of higher interest rates.
If earnings growth moderates, concerns about debt financing could leave the broader market more vulnerable to further volatility.
Other cloud computing companies, including Nebius and Iren, outperformed CoreWeave on Monday.
Oil prices and corporate earnings remain in focus
Developments in energy markets added another source of uncertainty for investors. Attacks on shipping and energy infrastructure in the Persian Gulf, alongside continued strikes involving Russia and Ukraine, have raised concerns about prolonged supply disruptions.
US West Texas Intermediate crude futures settled 2.06% higher at $103.50 a barrel. Brent crude futures, meanwhile, fell 0.41% to $109.41 a barrel.
Higher oil prices can add to inflationary pressures and complicate the outlook for interest rates.
Investors are also preparing for a busy week of corporate earnings.
Meta Platforms and Tesla are scheduled to report results on Wednesday, while SpaceX is due to report on Tuesday.
The results could help investors assess the outlook for technology spending, AI-related investment, and corporate profitability as markets attempt to recover from last week’s losses.
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