U.S. stocks rebounded Monday as investors moved back into artificial-intelligence and semiconductor shares after recent technology-sector weakness, setting up a critical week dominated by the Federal Reserve and earnings from several of the world’s largest technology companies.
The S&P 500 rose 0.7% to 7,676.77, the Nasdaq Composite advanced 0.8% to 26,169.38, and the Dow Jones Industrial Average gained 0.3% to 52,361.58. Nvidia provided the strongest lift to the broader market, rising 2.4%.
The advance came despite continued volatility across AI-related stocks. Investors remain focused on whether the enormous amounts of capital being committed to data centers, computing infrastructure and advanced chips will ultimately generate returns sufficient to justify current valuations.
Attention now shifts toward another major round of technology earnings. Alphabet and Microsoft are scheduled to report Wednesday, followed by Amazon on Thursday. Roughly one-third of S&P 500 companies are scheduled to report results this week, creating an unusually concentrated test for corporate earnings expectations.
Monetary policy will provide another important test as investors assess the Federal Reserve’s next decision and what policymakers signal about the path of interest rates.
Monday’s rebound showed that investors remain willing to buy weakness in AI-related stocks. The combination of major technology earnings and monetary-policy developments will now help determine whether the recovery develops into a broader advance or proves temporary.
