AI Stocks Lead Rebound on Wall Street

AI stocks recovered some of their steep losses from last week, but the rest of the market and stocks worldwide were shaky on Monday.

• The S&P 500 rose 31.29 points, or 0.4%, to 7,690.73.
• The Dow Jones Industrial Average fell 36.38 points, or 0.1%, to 51,966.03 after swinging between losses and gains earlier in the day.
• The Nasdaq composite rose 290.85 points, or 1.1%, to 26,430.89.

The majority of US stocks outside of AI and tech fell, the AP reports. In Europe, indexes fell more than 1% following protests over the weekend that could force governments to increase their spending. That in turn could put even more pressure on bond markets, and yields cranked higher worldwide.

Nvidia added 1.4% and was one of the strongest forces lifting the S&P 500. Because it's the largest stock on Wall Street by total market value, a move for its stock has more effect on the index than any other's. SpaceX, which controls the xAI business, rose 1.3% to $147.73. Its founder, Elon Musk, pledged on Monday to give one share of SpaceX to "every kid in America" next year. The offer came after Anthropic said over the weekend that it will commit 5% of the shares in its highly anticipated initial public offering of stock to a new "public benefit" fund.

• The moves for AI stocks were still choppy, though. CoreWeave, a company that's borrowed to buy AI chips that it rents out to customers over the cloud, has been at the center of the market's swings. After initially jumping to a 7% burst in the morning, it flipped to a loss of 0.4%. That followed its loss last week of 25.2%.

The swings come ahead of some profit reports coming later in the week that could offer more details about the strength of AI-related spending. Meta Platforms, which is pushing its Muse AI agent, will report its latest quarterly results on Wednesday. Lam Research, which supplies equipment and services for the making of semiconductors, will also talk about how its business is doing on Wednesday.

• Expectations are high across the board for US companies' profits from the summer. Analysts are forecasting overall growth of 29% for companies in the S&P 500 from the prior summer, according to FactSet. Those high expectations are what has allowed the U.S. stock market to run to records despite worries about war, high inflation and pressure from the bond market.
• Cleveland-Cliffs rallied 16% after the steel company reported a bigger profit for the latest quarter than analysts expected. CEO Lourenco Goncalves said it was the strongest quarter for the company in three years and that the outlook for profit in 2027 "has improved materially" from three months ago.