A rebound in AI stocks lifted Wall Street on Monday, pulling the S&P 500 back within 1% of its record and driving the Dow to a fresh high. US stock futures then edged up, signalling renewed faith in the AI trade after June’s chip sell-off.
A rebound in artificial-intelligence stocks lifted the US market on Monday, and futures pointed higher afterwards. Futures tied to the Dow Jones Industrial Average, the S&P 500 and the Nasdaq 100 each rose roughly 0.1% following the session.
AI stocks pull the S&P 500 near a record
The strength came from the AI trade, which lifted the major benchmarks even as most of the market lagged. The S&P 500 rose 0.7% to within 1% of its all-time high, though the majority of stocks in the index fell. Strength in AI names sent the Nasdaq composite 1.1% higher, while the Dow rose 155.84 points, or 0.3%, to a record.
The advance pointed to renewed faith in the AI trade following June’s chip stock sell-off. Under the surface the gains were narrow: six sectors traded lower, and the equal-weight S&P 500 rose just 0.04%, trailing the cap-weighted benchmark.
AI-trade doubts still linger
The recovery followed weeks of sharp swings. AI stocks have swung sharply in recent weeks on worries that their prices shot too high, with doubts rising about whether all the dollars flowing into AI chips and data centres can possibly create enough gains in productivity and profits to make back all the investments. That backdrop keeps the market open to bouts of volatility.
The next test comes later this week, when SK Hynix, the South Korean memory maker, plans to raise $28 billion through a US listing on the Nasdaq. Its Seoul-listed stock has more than tripled this year on the AI boom, yet fell 14.6% on Thursday alone. Investors will also watch Samsung Electronics earnings on Tuesday for another read on the chip trade across the major indices.
Sources: Yahoo Finance, CommBank, Market Index
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