• U.S. stocks rebounded on Monday, with the S&P 500 rising 0.7% and the Nasdaq gaining 1.4% intraday, led by a recovery in technology and AI shares after last week’s sharp selloff.
  • Chipmakers and AI infrastructure companies paced the advance, while lower oil prices and easing Treasury yields provided support.
  • Investors are gearing up for a busy week of corporate earnings, with capital-expenditure guidance from major tech and industrial firms in focus.

Technology Leads Recovery

The S&P 500 and Nasdaq Composite extended gains on Monday, with the tech-heavy Nasdaq up 1.4% and the S&P 500 0.7% higher as of 10:24 a.m. EDT, according to intraday figures. The rebound follows the Nasdaq’s roughly 4.5% drop last week and the S&P 500’s 2% decline—their largest weekly losses since late June—driven by concerns that high financing costs could undermine the AI infrastructure investment boom.

A gauge of major chipmakers rose 2.9% in early trading, according to Bloomberg, as investors returned on expectations that the AI spending cycle would continue to support earnings. Intel (INTC) climbed after JPMorgan (JPM) upgraded the stock to neutral, while CoreWeave (CRWV) advanced following a buy recommendation from Goldman Sachs (GS) after its recent plunge. The gains mark a partial reversal of last week’s defensive rotation into consumer staples and health care, though it remains to be seen whether the recovery will broaden.

Oil and Yields Offer Relief

Lower oil prices and easing bond yields helped sentiment. Brent crude fell about 1.8% to near $107 a barrel, Reuters (TRI) reported, partly attributed to President Donald Trump’s decision to waive some sanctions on Russia, raising expectations of additional supply. Secretary of State Marco Rubio described an assessment period of up to 60 days, according to the report. Meanwhile, the 10-year Treasury yield eased to approximately 5.085% earlier Monday, reducing valuation pressure on growth stocks and potentially lowering financing costs for capital-intensive AI projects.

However, the bond rally may partly reflect defensive positioning and worries about economic growth rather than improving inflation prospects, cautioned Schwab (SCHW)’s fixed-income strategist Cooper Howard. “Higher rates can restrain demand, but cannot directly resolve shortages of oil, electricity or semiconductor capacity,” Schwab analysts noted. The relief in energy markets also remains fragile: Iran reported another tanker striking a mine in the Strait of Hormuz, and shipping and insurance costs kept physical oil prices elevated, meaning benchmark futures declines may not immediately translate into lower delivered energy costs.

Earnings and Guidance in Focus

The week ahead features earnings reports from Meta (META), Tesla (TSLA), Netflix (NFLX), General Motors (GM) and GE Aerospace (GE), among others. Investors will scrutinize capital-expenditure guidance, particularly from AI leaders, to gauge whether spending plans are justified by revenue and cash flow. “Watch capex guidance closely,” said Schwab chief investment strategist Liz Ann Sonders, according to a note.

The market’s next move likely hinges on whether companies demonstrate strong demand and credible returns on AI investment, or whether spending outpaces cash generation, reigniting volatility. For now, the rebound offers a reprieve from last week’s selling, but the underlying concerns—elevated borrowing costs and geopolitical energy risks—have not disappeared.

Elsewhere, Cleveland-Cliffs (CLF) rallied after better-than-expected quarterly earnings, helped by tariff-supported steel prices, providing a contrast to the tech-led advance.

Correction: An earlier version of this article misstated the intraday timing of the S&P 500 and Nasdaq gains. The figures reflect the latest available data as of 10:24 a.m. EDT.