US stocks finished mostly higher on Monday as investors returned to technology shares following last week’s sharp sell-off, although concerns about debt-funded artificial intelligence investment continued to weigh on sentiment.
The Nasdaq Composite gained 1.11% to 26,430.89, while the S&P 500 rose 0.41% to 7,690.73. The Dow Jones Industrial Average slipped 36.38 points, or 0.07%, to 51,966.03.
Semiconductor stocks led the recovery, with Intel advancing 2% following an upgrade from JPMorgan. AMD added 1.8%, while Micron Technology climbed around 3%.
However, CoreWeave fell 0.4% despite receiving an upgrade from Goldman Sachs, extending concerns about the company’s heavy borrowing to finance AI infrastructure. The stock lost more than 25% last week as investors questioned whether returns from AI investment would justify rising debt levels.
The rebound followed a difficult week for technology stocks, with the Nasdaq falling 4.5% and the S&P 500 declining nearly 2%. The information technology sector recorded its worst weekly performance since April 2025.
Investors are now looking ahead to quarterly earnings from major technology companies, including Meta Platforms and Tesla, for further indications of the strength of AI-related spending and corporate profitability.
Oil markets remained volatile amid disruptions to energy infrastructure linked to the Iran war and the Russia-Ukraine conflict. West Texas Intermediate crude rose 2.22% to US$103.66 a barrel, while Brent slipped 0.28% to US$109.55.
Australian Market Outlook
Australian shares are set to open lower, with S&P/ASX 200 futures down 68 points, or 0.77%, to 8,792.
The weaker outlook comes despite a recovery in US semiconductor stocks, as investors remain cautious about elevated technology valuations, global interest rates and geopolitical risks.
European bond markets also faced pressure, with French government debt weakening following weekend unrest that added to concerns about the country’s fiscal position.
Locally, investors will be watching the performance of technology, energy and resources stocks, alongside movements in global bond yields and oil prices.
Attention will also turn to upcoming US corporate earnings, particularly Meta’s results, for further insight into AI investment trends and their implications for global equity markets.
