Wall Street’s technology sector rebounded Monday after last week’s sharp AI-driven selloff, but the closing numbers showed investors were far from returning to risk indiscriminately.
The Nasdaq Composite rose 1.11% to 26,430.89 and the S&P 500 gained 0.41% to 7,690.73, while the Dow Jones Industrial Average slipped 0.07% to 51,966.03.
Semiconductors delivered the clearest reversal. The Philadelphia Semiconductor Index gained 1.6%, ending an eight-session losing streak during which it had fallen about 15.7% — its longest run of declines since October 2008.
The recovery followed growing investor concern that higher interest rates and enormous financing requirements could undermine returns from the AI infrastructure boom.
Monday’s rebound was nevertheless narrow. Seven of the S&P 500’s 11 sectors finished lower, while declining stocks outnumbered advancers on both the New York Stock Exchange and Nasdaq. Utilities fell 2% and real estate lost 1.2%, while technology advanced 1.2%.
Amazon rose 5%, Tesla gained 3.8% and Intel advanced 2.4%. AI-infrastructure names Nebius and Iren gained 2.9% and 2.7%, respectively, while CoreWeave surrendered an early advance and closed 0.4% lower.
Oil added another complication. U.S. crude reversed earlier losses and settled 2.2% higher at $103.66 a barrel.
The next test is earnings. Major technology results this week will help determine whether Monday’s rebound develops into a broader recovery or remains a short-term reversal after an unusually severe selloff.
For investors, breadth remains the key signal. The headline indexes recovered, but most sectors and more individual stocks still declined. Monday reduced immediate pressure on the AI trade without resolving concerns over financing costs, valuations and the returns required to justify extraordinary infrastructure spending.
