The S&P 500 gained 0.4% by late morning Monday and the Nasdaq rose 0.7%, as AI-linked chip stocks clawed back part of last week’s losses while the Dow slipped 0.2%.
Nvidia rose 1.8%, AMD added 3.4% after expanding its AI partnership with Microsoft, and Sandisk jumped 5.6%, helping steady a market rattled by worries AI valuations had run too far.
Alphabet’s results due Wednesday could test that rebound, with investors looking for evidence that heavy AI spending is translating into profit and productivity strong enough to justify near-record stock prices.
Oil near $88 a barrel and gasoline back above $4 a gallon still threaten the broader market, as fighting around Iran cuts Strait of Hormuz traffic and pushes the 10-year Treasury yield up to 4.58%.